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Abstract: This chapter explores the attributes of compliance in the context of data breaches. First, it identifies the sort of corporate governance problem that data breaches create. Then, it approaches the empirical work related to data breaches and to the organization of compliance-based responses in terms of risk assessment, training, and compliance, both preemptively and after a breach. Next, the chapter discusses the extant theoretical and empirical evidence about the short- and long-term impacts of IT security events on breached firms as well as corporate governance issues relating to data breaches. It also examines studies that evaluate the impact of different types of event on various types of firm and stakeholder. The chapter also explores how data breaches impact broader issues of corporate governance and compliance. In the end, it identifies potential research questions and avenues for future researchers on how firms or governments might have to think about their IT security investments and the necessary measures that have to be in place to respond effectively if such events occur.
Abstract: Compliance has become important in our contemporary markets, societies, and modes of governance across very different public and private domains, stimulating a rich body of empirical work and practical expertise. Yet, so far, we do not have a comprehensive understanding of what compliance is and what mechanisms and interventions play a role in shaping it, or how compliance shapes various fields. Thus far, the academic knowledge of compliance has remained siloed in different disciplinary domains, and along different regulatory and legal spheres and different mechanisms and interventions. This chapter, which is the introduction to The Cambridge Handbook of Compliance, offers a comprehensive view of what compliance is. It takes a broad approach in seeing compliance as the interaction between rules and behavior. It discusses what different mechanisms and interventions are at play in shaping such compliance. And it reflects on the different methods for studying compliance and their inherent limitations.
Abstract: Antitrust compliance scholarship, particularly with a focus on collusion, has been an area of study for some time (; ; ; ). Changes in technology and the rise of artificial intelligence (AI) and machine-learning have created new possibilities both for anticompetitive behavior and for detection of algorithmic collusion. To some extent, AI collusion takes traditional ideas of collusion and simply provides a technological overlay to them. However, in some instances, the mechanisms of both collusion and detection can be transformed using AI. This chapter discusses existing theoretical and empirical work, and identifies research gaps as well as avenues for new scholarship on how firms or competition authorities might invest in AI compliance to improve detection of wrongdoing. We suggest where AI collusion is possible and offer new twists to where prior work has not identified possible collusion. Specifically, we identify the importance of AI in addressing the “trust” issue in collusion. We also identify that AI collusion is possible across nonprice dimensions, such as manipulated product reviews and ratings, and discuss potential screens involving co-movements of prices and ratings. We further emphasize that AI may encourage entry, which may limit collusive prospects. Finally, we discuss how AI can be used to help with compliance both at the firm level and by competition authorities.
Compliance has become key to our contemporary markets, societies, and modes of governance across a variety of public and private domains. While this has stimulated a rich body of empirical and practical expertise on compliance, thus far, there has been no comprehensive understanding of what compliance is or how it influences various fields and sectors. The academic knowledge of compliance has remained siloed along different disciplinary domains, regulatory and legal spheres, and mechanisms and interventions. This handbook bridges these divides to provide the first one-stop overview of what compliance is, how we can best study it, and the core mechanisms that shape it. Written by leading experts, chapters offer perspectives from across law, regulatory studies, management science, criminology, economics, sociology, and psychology. This volume is the definitive and comprehensive account of compliance.