Efficiency of Posner's Nuisance Rule: A Reconsideration

We claim that Posner's nuisance rule maintains the efficiency feature even under severe informational asymmetry. This paper, as a critical assessment of an overly complicated order-reporting mechanism by Kim [2002], argues that Posner's original value-reporting mechanism alone is enough to guarantee a socially efficient outcome, despite the plaintiff's occasional incentive to overreport.

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Year of publication:	2004
Authors:	Kim, Iljoong ; Kim, Jaehong
Published in:	Journal of Institutional and Theoretical Economics (JITE). - ISSN 0932-4569. - Vol. 160.2004, 2, p. 327-327

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Extent:	text/html
Type of publication:	Article
Classification:	K13 - Tort Law and Product Liability ; K41 - Litigation Process ; K42 - Illegal Behavior and the Enforcement of Law
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005764325