We analyze liability rules in a setting where injurers are potentially insolvent and where negligence standards may … deviate from the socially optimal level. We show that proportional liability, which sets the measure of damages equal to the … negligence-based rules. Moreover, proportional liability outperforms strict liability if the standard of due care is not set too …

We analyze liability rules in a setting where injurers are potentially insolvent and where negligence standards may … deviate from the socially optimal level. We show that proportional liability, which sets the measure of damages equal to the … negligence-based rules. Moreover, proportional liability outperforms strict liability if the standard of due care is not set too …

This is a survey of legal liability for accidents. Three general aspects of accident liability are addressed. The first … is the effect of liability on incentives, both whether to engage in activities (for instance, whether to drive) and how …-bearing and insurance, for the liability system acts as an implicit insurer for accident victims and it imposes risk on potential …

Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is … externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability …

the case with toxic torts. Risk aversion and ambiguity aversion tend to have a similar impact on optimal liability rules … liability dominates negligence when the injurer has lower degrees of risk and ambiguity aversion than the victim and can …

In the theory of public enforcement of law the choice of the liability rules is between strict liability and fault …-based liability. In this paper, we study the determinants of compliance when in addition to standard economic incentives wrongdoers …

It has been shown by Polinsky and Shavell that the strict liability rule is socially superior to the negligence … liability rule when firms are injurers, strangers are victims, and accidents have a unilateral nature if prefect competition … among firms prevails. This article considers the problem of socially efficient liability rules in a market where natural …

precedents in the diffusion of the strict liability rule for manufacturing defects. This new study tests which legal precedents … new state legislation appeared to influence courts’ propensities to adopt the strict liability rule. When the executive … Democratic Party – state courts were more inclined to adopt the strict liability rule. This last result contradicts an economic …