Private Versus Public Enforcement of Laws - A Law & Economics Perspective

Abstract

When should laws be enforced by private actors and when should society rely on law enforcement by public authorities? This question has been analyzed in great detail in law & economics scholarship. This article surveys the literature and outlines a framework of criteria for deciding whether private or public enforcement of laws is preferable. To exemplify the criteria, the framework is then applied to some “real-life” enforcement issues.

Keywords: law enforcement, economic theory of regulation, optimal enforcement of law, law & economics, litigation, contract law, criminal law, environmental law, securities litigation, class action, citizen suit, qui tam suit

JEL Classification: K42, K40, K22, K12, K14