Optimal Timing of Legal Intervention: The Role of Timing Rules

18 Pages Posted: 21 Nov 2008

See all articles by Barbara Luppi

Barbara Luppi

University of St. Thomas School of Law; Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics

Francesco Parisi

University of Minnesota - Law School; University of Bologna

Date Written: November 19, 2008

Abstract

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.

Keywords: Legislation, timing, option value, rules, standards

JEL Classification: G13, K10, K20

Suggested Citation

Luppi, Barbara and Parisi, Francesco, Optimal Timing of Legal Intervention: The Role of Timing Rules (November 19, 2008). Minnesota Legal Studies Research Paper No. 08-45. Available at SSRN: https://ssrn.com/abstract=1304120 or http://dx.doi.org/10.2139/ssrn.1304120

Barbara Luppi

University of St. Thomas School of Law

2115 Summit Avenue
Saint Paul, MN 55105
United States

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics ( email )

Viale Berengario 51
41100 Modena, Modena 41100
Italy

Francesco Parisi (Contact Author)

University of Minnesota - Law School ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States

University of Bologna ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

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