
Contents
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Why We Need Class Actions Why We Need Class Actions
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Class Actions and Privatization Theory Class Actions and Privatization Theory
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Conservative Arguments against Class Actions Conservative Arguments against Class Actions
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Don’t sweat the small stuff. Don’t sweat the small stuff.
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Class actions take away liberty. Class actions take away liberty.
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Class actions alter the substantive law. Class actions alter the substantive law.
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Class actions have special underenforcement problems. Class actions have special underenforcement problems.
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Class actions are often meritless. Class actions are often meritless.
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Class action lawyers end up with all the money. Class action lawyers end up with all the money.
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Class actions don’t deter misconduct. Class actions don’t deter misconduct.
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Class actions overdeter misconduct. Class actions overdeter misconduct.
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Five Why Private Enforcement Needs Class Actions
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Published:November 2019
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Abstract
This chapter argues that private enforcement of the law needs class action lawsuits in order to be effective. For small injuries—known as “negative expected value claims”—the only possible private lawsuit is the class action. Although individual arbitration is sometimes touted as an alternative to class action lawsuits, empirical studies show that arbitration is far inferior. The class action also harnesses most if not all of the virtues of privatization explored in chapter 3: smaller government, more self help, profit motivation, better resources, and less capture by special interests. This chapter also explains why several conservative and libertarian arguments against the private attorney general unique to class action lawsuits fail. More serious arguments are treated in later chapters.
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