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American Law and Economics Review Advance Access published online on October 28, 2009

American Law and Economics Review, doi:10.1093/aler/ahp016
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© The Author 2009. Published by Oxford University Press on behalf of the American Law and Economics Association. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org

Influence and Deterrence: How Obstetricians Respond to Litigation against Themselves and Their Colleagues

David Dranove and Yasutora Watanabe

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.


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