This week's episode of the Faculty Podcast is a recording of Lee Fennell's October 22nd Chicago's Best Ideas lecture on "Risk Reversals" (video has also been added to Bryan Hart's writeup of the talk).
As a refresher, here's Prof. Fennell's description of the talk:
Law often allocates risk, as through tort doctrines. Should people be
able to undo or "reverse" such risk allocations by, for example,
selling their rights to any claims that may later develop? Scholars
have interestingly examined this question, as well as many other
innovative ideas for rearranging risk outside of traditional insurance
markets. This talk focuses attention on some related but underexplored
questions surrounding risk reversibility itself—such as the optimal
amount of stickiness in society's default risk allocations, the effects
of heterogeneity in risk arrangements, and the implications (cognitive
and otherwise) of starting from one risk baseline rather than another.