Economics of implementing regulation

• Transaction costs
  • Who has incentive to watch?
• Bureaucratic supervision
  • Who watches the watchers?
• Tort systems
  • A tort is a civil offense (i.e., causing damage to another in a way that infringes their rights) but does not pose a threat to the organization of society
    • Therefore damages may be collected, perhaps punitive damages (i.e., more than actually suffered for the purpose of punishing the offender), but at the expense of the victim
    • Also at the initiative of the victim, cf. lawyer Matsumura? also the suit of the Chinese victim of Nishimatsu Co.
  • Legal expense
  • Uncertainty and delay in compensation (transaction cost)

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