Growing up with five brothers, my parents had to be particularly careful that they were seen to be fair and just if all out war was not to ensue over the most trivial matters. One technique that we often used was that whoever cut the cake was the last person to be able to choose which piece of the cake...
In my recent post on limited liability , I argued that one of the perverse consequences of limiting shareholder responsibility for corporate torts was to create the moral hazard by which investors could capture the upside of risky activities that imposed costs on others, without having to worry about...