Alexander, Stremitzer; Tabbach Avraham D. - In: The B.E. Journal of Theoretical Economics 14 (2014) 1, pp. 25-25
In important areas like medical malpractice and environmental torts, injurers are potentially insolvent and courts may make errors in determining liability (e.g. due to hindsight bias). We show that proportional liability, which holds a negligent injurer liable for harm discounted with the...