Quotas

Abstract: The Article addresses simple yet surprisingly overlooked questions—could numerical caps on legal rights be a valuable regulatory mechanism? In which circumstances should we employ them? This Article is the first to discuss numerical caps—quotas—as a distinct legal instrument, and the lessons it provides are pertinent to a plethora of regulatory settings. The Article first sets out the theoretical framework for using quotas. It does so by synthesizing real-world examples and fleshing out the reasons for choosing quotas, especially non-tradable, over other regulatory alternatives, such as prices. Armed with these theoretical insights, the Article suggests practical implications, focusing on civil procedure. Quotas can be valuable in balancing some of the perennial conflicts that the American legal system faces. They restrict over-use of courts and push litigants to carefully use their rights, and simultaneously guarantee a wide access to courts without imposing fees. Accordingly, the Article analyzes several procedural contexts—such as interlocutory appeals and pleading standards—in which policymakers can benefit from quotas.