To Regulate, Litigate, or Both

79 Pages Posted: 15 Aug 2009 Last revised: 27 May 2010

See all articles by Eric Helland

Eric Helland

Claremont McKenna College - Robert Day School of Economics and Finance; RAND

Jonathan Klick

University of Pennsylvania Law School; Erasmus School of Law; PERC - Property and Environment Research Center

Multiple version iconThere are 2 versions of this paper

Date Written: August 13, 2009

Abstract

In the United States insurance is regulated both by state insurance commissions and class action litigation. The interaction of these two systems has not been extensively studied. We examine four different facets of the regulation litigation tradeoff. The first is to examine whether a regulator’s interest in a particular cause of action reduces the likelihood that class actions covering this cause of action will be filed in the regulator’s home state. We also examine several measures of regulatory stringency in the state to determine whether there is a substitution effect between regulatory action and litigation. We also examine whether class actions are less frequent when regulators issued an administrative decision on a particular issue previously or if there are no existing state laws on the particular issue. We examine the impact of electing judges on patterns of filing. Lastly, we examine the impact of previous litigation both in the state and the specific line of litigation.

Keywords: class action, regulation, litigation, capture

JEL Classification: K00, K13, K23, K32, K41, L51

Suggested Citation

Helland, Eric A. and Klick, Jonathan, To Regulate, Litigate, or Both (August 13, 2009). RAND Working Paper No. WR-677-ICJ. Available at SSRN: https://ssrn.com/abstract=1450425 or http://dx.doi.org/10.2139/ssrn.1450425

Eric A. Helland

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States
909-607-7275 (Phone)
909-621-8243 (Fax)

RAND ( email )

1776 Main Street
Santa Monica, CA
United States

Jonathan Klick (Contact Author)

University of Pennsylvania Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States
2157463455 (Phone)

Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands

PERC - Property and Environment Research Center

2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
43
Abstract Views
860
PlumX Metrics