Eastern Economic Journal

FIGURE 2

FROM:

An Economic Analysis of Libel Law

Manoj Dalvi and James F Refalo

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Figure 2.

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Actions of the newspaper. There are three potential actions for the newspaper under strict liability. The actions are kill the story without investigation, publish without an investigation, or investigate and publish if the investigation signals that the story is true. The payoffs to the newspaper for these actions are illustrated by the following diagram.

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