American Law and Economics Review Advance Access published online on October 28, 2009
American Law and Economics Review, doi:10.1093/aler/ahp016
Influence and Deterrence: How Obstetricians Respond to Litigation against Themselves and Their Colleagues
Kellogg School of Management, Northwestern University
Send correspondence to: Yasutora Watanabe, Department of Management and Strategy, Kellogg School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208; E-mail: y-watanabe{at}kellogg.northwestern.edu.
| Abstract |
|---|
The willingness of individuals to engage in a harmful act may be influenced by direct personal experiences and the experiences of others, which can inform individuals about the likely consequences of their actions. In this paper, we examine how obstetricians respond to litigation. It is contended that obstetricians respond to increases in litigiousness by performing more cesarean sections. Using micro data, we examine whether physicians perform more cesareans after they or their colleagues have been contacted about a lawsuit. We observe very small, short-lived increases in cesarean section rates. It does not appear that the recent sharp rise in cesarean section rates is in direct response to litigation.