Regulation and the negligence rule are both designed to obtain compliance with desired standards of behavior, but they … differ in a primary respect: compliance with regulation is ordinarily assessed independently of the occurrence of harm … use of the negligence rule is triggered by harm, the rule enjoys an intrinsic enforcement cost advantage over regulation …

Liability and safety regulation are examined as means of controlling risks in a theoretical model of the occurrence of … accidents. According to the model, regulation does not result in appropriate reduction of risk -- due to the regulator's lack of … knowledge about risk -- nor does liability result in that outcome -- because the incentives it creates are diluted by the chance …

Liability in tort and the regulation of safety are considered as means of controlling accident risks using the … instrumentalist, economic method of analysis.Four general determinants of the relative social desirability of liability and regulation … observed to be made between liability and regulation are, when broadly viewed, socially rational: Notably, activities that …

importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great … help to explain the observed predominance of liability over taxation, except in the area of pollution. The following …

Taxation and liability are compared here as means of controlling harmful externalities. It is emphasized that liability … liability does not require the state to determine expected harm - it requires only that injurers pay for harm that occurs …. However, taxation enjoys an advantage over liability: incentives under liability are diluted to the degree that injurers might …

This article studies how liability for environmentally harmful discharges affects the incentives of firms to engage in …

We develop a model where products liability trials provide information to consumers who are not parties to the …

liability rules on incentives to reduce accident risks. Then consideration of accident law is broadened (chapter 5) to reflect … the effect of liability rules on compensation of victims and the allocation of risk. In this regard a central issue is the … roles of victims' insurance and of liability insurance, and how they alter the incentives inherent in liability rules …

This paper analyzes the normative role for civil liability in aligning terrorism precaution incentives, when the …;optimalquot; liability regime indeed exists, its features appear at odds with conventional legal templates. For example, it frequently …

liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to …. Shareholder liability, mandatory liability insurance and punitive damages are also discussed …