Optimal Timing of Legal Intervention: The Role of Timing Rules
Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics; University of St. Thomas School of Law
University of Minnesota - Law School; University of Bologna
November 19, 2008
Minnesota Legal Studies Research Paper No. 08-45
In a recent article, Gersen and Posner (2007) examined the role of timing rules in promoting the optimal timing of legislative action. In this brief essay, we address the issue of optimal timing of lawmaking through the lens of option theory. We provide a formalization of seven alternative timing rules and evaluate the option value of those legislative strategies. This formalization allows us to evaluate the desirability of alternative timing rules in different regulatory environments.
Number of Pages in PDF File: 18
Keywords: Legislation, timing, option value, rules, standards
JEL Classification: G13, K10, K20working papers series
Date posted: November 21, 2008
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