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 …

transfer of wealth from the victim to a third party, whose earnings increase as a consequence of the accident. Such transfers …). Finally, we offer considerations on the optimal design of liability rules. …

For joint liability problems concerning tort law, a legal compensation scheme may be based on lower and upper bounds of … associated liability game. …

This paper estimates the marginal accident externality of driving in Central London by exploiting variation in traffic …, and a 6.5% increase in serious injuries/fatalities. Our preferred estimates indicate that the accident, slight injuries … £0.16. The marginal accident externality is positive, as the marginal driver along congested roads decreases the risk and …