Ayres, Ian; Goldbart, Paul M. - In: The Journal of Legal Studies 32 (2003) 1, pp. 121-151
Louis Kaplow and Stven Shavell have shown that liability rules tend to efficiently harness the defendant’s private information when courts are imperfectly informed as to litigants’ valuations. But they claim that liability rules cannot harness private information when the disputants’...