Punitive Damages Empower Victims, Deter Corporate Misconduct
The article discusses why punitive damages are used in legal cases from an economic viewpoint. One main reason is to prevent future bad behavior (like deterring drunk driving). Other reasons include making up for unfair harm and giving the wrongdoer a relevant punishment. When deciding to use punitive damages, it is important to consider how bad the action was, how rich the person who did it is, and how much it will cost to go through the legal process.