Bundling Legal Rules The same person controls prosecution and collects fines That makes sense,since otherwise the controller takes a bribe to drop the case But it creates an opportunity for fraudulent prosecution More efficient punishments go with a lower standard of proof Makes sense,since errors have lower social cost,but... An efficient punishment is an incentive for fraudulent prosecution Which is easier with a lower standard of proofBundling Legal Rules • The same person controls prosecution and collects fines • That makes sense, since otherwise the controller takes a bribe to drop the case • But it creates an opportunity for fraudulent prosecution • More efficient punishments go with a lower standard of proof • Makes sense, since errors have lower social cost, but … • An efficient punishment is an incentive for fraudulent prosecution • Which is easier with a lower standard of proof