Punitive damages are a controversial part of the legal system. The main goal of this economic analysis is to figure out when and how much punitive damages should be awarded. The researchers suggest that punitive damages should be given when there's a chance the wrongdoer might not be held accountable. This helps to make sure people are deterred from bad behavior. They also found that punishing corporations with punitive damages might not work as intended, as it often ends up hurting shareholders and customers instead of the actual wrongdoers.