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In class action antitrust litigation, the standards for acceptable economic analysis at class certification have continued to evolve. The most recent event in this evolution is the United States Supreme Court’s decision in Comcast Corp. v. Behrend, 133 S. Ct. 1435 (2013). The evolution of pre-Comcast law on this topic is presented, the Comcast decision is thoroughly assessed, as are the standards for developing reliable economic analysis. This article explains how economic evidence of both antitrust liability and damages ought to be developed in light of the teachings of Comcast, and how liability evidence can be used by economists to support a finding of common impact for certification purposes. In addition, the article addresses how statistical techniques such as averaging, price-dispersion analysis, and multiple regressions have and should be employed to establish common proof of damages.

As with most professional service occupations, liability claims are a major concern for accounting professionals. Most of the academic research on accountants’ professional liability has focused on audit services. This study extends research on accountants’ professional liability by examining liability claims arising from the provision of tax services. In addition to a descriptive analysis, the current study explores the role of merit in tax malpractice litigation. Hypotheses are developed based on the legal construct of claim merit, which requires the presence of accountant error and damages as a result of that error for a claim to be considered meritorious. The hypotheses are tested using logistic and OLS regression of 89 actual claims filed with an insurer of tax professionals. The results suggest that the components of merit are significant in determining both the presence of compensatory payments to the client and the dollar amount of those payments, although the hypothesized interaction effect is only significant for the dollar amount of compensatory payments.

Offshoring is the process of using unaffiliated foreign companies or affiliated offshore entities (AOEs) to manufacture goods or perform services. The Big 4 public accounting firms offshore tax services (Houlder, 2007) and, more recently, have started to offshore audit tasks of their U.S.-based clients to AOEs located in India (Daugherty & Dickins, 2009). While the benefits of offshoring might be substantial, there are also costs associated with moving domestic work to foreign locations. One of these costs may be greater damage awards in lawsuits involving an audit failure where audit tasks were performed overseas as opposed to the United States. This study investigates that possibility by experimentally examining the effect of offshoring audit tasks requiring different levels of judgment on the amount of damages awarded by potential jurors as a result of an audit failure. The results show potential jurors awarded greater damages against the auditor when audit tasks were performed offshore than when they were performed in the United States. There was no effect of the level of judgment of the audit task on damages awarded. Since this study examines offshoring to only one location, India, results may not be generalizable to other offshore locations.

Purpose – Rural–urban divides characterize many violent internecine conflicts. The lack of rural development is often cited as an underlying structural cause of this phenomenon, and thus strengthening rural–urban linkages is often touted as a way of dismantling the structural conditions for internecine violence. This chapter attempts to identify how both the strength and the form of rural–urban linkages influence the intensity of insurgent violence.

Methodology – Using geographic information systems, this chapter analyzes the intensity of specific violent attacks by rural insurgent groups in Maoist India as a function of rural–urban linkages and transportation network redundancy.

Findings – It finds that the degree of interconnectivity in transportation networks is a more robust determinant of restraint among violent actors than the sheer strength of rural–urban linkages. Production networks characterized by highly networked road systems are more likely to incent restrained behavior among rebel groups, which may be dependent on taxation or extortion through obstruction.

Limitations/implications – The chapter quantitatively analyzes a phenomenon, but does not identify causal mechanisms driving it. The policy implication is that providing transportation infrastructure within rural areas may be a more effective guard against insurgent violence than connecting urban and rural areas.

Originality – The chapter makes a methodologically unique link between the large existing literature on rural–urban linkages, and the growing literature on trade networks in violent conflict.

This chapter addresses how firms buying information technology (IT) products select their suppliers. We argue that social embeddedness, in the sense of own experiences with suppliers and information about experiences of third parties, influences these types of selection decisions. More specifically, we claim that social embeddedness is more important if: (1) the potential damage for the buyer from receiving an inferior product is larger and (2) if it is more difficult for the buyer to monitor the quality of the product. We use large-scale surveys of IT transactions in the Netherlands and Germany to test these hypotheses. In general, our hypotheses about the effects of social embeddedness on partner selection are supported. We find that buyers tend to assign greater weight to product quality if the potential damage for the buyer is larger. Negative third-party information is particularly important if the buyer has large problems to monitor the quality of a product.

In effort to understand and reduce flood consequences more effectively and strategically, flood risk assessment has been a cornerstone of a long-term flood management. One component of flood risk assessment is the estimation of a range of possible damage to an area exposed to flooding, that is, the vulnerability curve. The vulnerability curve can be depicted by a stage–damage relationship. This study attempts to investigate how vulnerability to flooding can be quantitatively assessed using a micro-scale approach in Malaysia’s vulnerable areas. A residential area in Kota Bharu was chosen as the case study area. Depth–damage relationships from a multiple regression function of Department of Irrigation and Drainage Malaysia and spatial variability of residential buildings were used for the micro-scale assessment. Final estimates of expected annual damage were then calculated for each building type at 1-, 3- and 5-day flood durations. Results show that the methodology adopted is feasible to be applied for local-scale assessment flood risk assessment in Malaysia. The results also suggest that applying the methodology is possible when given wider availability of resources and information. This is particularly important for a robust end-to-end flood risk assessment for long-term effective flood management in Malaysia.