The aim of this paper is to study the effects of court errors in estimating the harm, on the parties' behaviour regarding the levels of care they take, and their decision to buy the information about the court errors. The analysis is carried out in a unified framework. [CDE-DSE WP no. 97].

Risky products cause two types of costs for society; the accident costs and the insurance costs. Liability rules allocate these costs between the parties involved. The expansion in the scope of product liability over the past thirty years has increased the cost of third-party liability...

A growing body of literature suggests that courts and juries are inclined toward division of liability between two strictly non-negligent or “vigilant†parties. However, standard models of liability rules do not provide for vigilance-based sharing of liability. In this paper, we...