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Tilburg Law and Economics Center

TILEC supports and stimulates academic research on the governance of economic activity. It fosters academically path breaking and practically relevant research and aims to be a leading center worldwide.

TILEC Work in Progress: Lenka Fiala and Martin Husovec

Using Experimental Evidence to Design Optimal Notice and Takedown Process
10:45-11:45, M 1003

Whether it is copyright infringement or hate speech, Internet intermediaries like Facebook, Twitter or YouTube are expected to enforce the law by removing illegal content. The legal scheme under which a lot of such delegated enforcement takes place is often referred to as notice & takedown. According to theory and empirical evidence, this scheme leads to many false positives due to over-notification by concerned parties, over-compliance by providers, and under-assertion of rights by affected content creators. We re-create these problems in an economic laboratory and then test a mechanism to address two of them: the over-compliance by providers, and the lack of complaints by the content creators. We show that our proposed solution of an independent ADR mechanism significantly reduces over-compliance by providers. At the same time, it increases complaints by the content creators who are successful in their complaints, but primarily in cases in which it is easier to evaluate who is right.  We present updated results with greater emphasis on the consequences of the ADR mechanism.




When: 20 March 2019 10:45

End date: 20 March 2019 11:45