Damage liability is increasingly used to regulate markets. Jens-Uwe Franck examines this development fundamentally and pays particular attention to securities and competition law. He reveals potential to better attune damage liability as a regulatory instrument.

Using damage liability to enforce market regulation has become increasingly commonplace in Germany and Europe, especially when it comes to securities regulation and competition law. Jens-Uwe Franck analyses the fundamental issues of this development and, using the standard model of optimal sanctions, identifies the systematic risks of over- and under-deterrence accompanying this method of private enforcement. These insights and a range of examples provide a basis for discussing the potential of damage liability to minimise risks of regulatory failure.

Autorentext
ist Inhaber des Lehrstuhls für Bürgerliches Recht, Handels- und Kartellrecht an der Universität Mannheim.