Precaution v. avoidance: A comparison of liability rules

The economic analysis of liability rules sponsors strict liability in the case that only injurers can take care to affect expected harm. Yet, negligence is usually the base line in jurisdictions around the world. We establish that negligence is superior if injurers can invest in both care-taking and avoidance activities.

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Year of publication:	2009
Authors:	Friehe, Tim
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 3, p. 214-216
Publisher:	Elsevier
Keywords:	Liability rules Care incentives Avoidance activities Strict liability Negligence

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008474007