Ganuza, Juan José; Gómez, Fernando - In: The Journal of Legal Studies 37 (2008) 2, pp. 577-594
We study the standard economic model of unilateral accidents under the assumption that the injurers have limited assets. We identify a second-best optimal rule that selects as due care the minimum of first-best care and a level of care that takes into account the wealth of the injurer. We show...