Download This PaperThe Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France Before World War I
40 Pages Posted: 30 Aug 2010 Last revised: 25 Jun 2011
Date Written: August 28, 2010
Abstract
This article analyzes the economics of “badmouthing” in the context of the pre-1914 French capital market. We argue that badmouthing was a means through which racketeering journals sought to secure property rights over issuers’ reputation. We provide a theoretical study of the market setup that emerged to deal with such problems, and we test our predictions using new evidence from contemporary sources.
Keywords: financial press, IPO, libel law, reputation
JEL Classification: J14, L15, K13, N23
Suggested Citation: Suggested Citation
Bignon, Vincent and Flandreau, Marc, The Economics of Badmouthing: Libel Law and the Underworld of the Financial Press in France Before World War I (August 28, 2010). Available at SSRN: https://ssrn.com/abstract=1667521 or http://dx.doi.org/10.2139/ssrn.1667521
Vincent Bignon (Contact Author)
Banque de France ( email )
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France
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