A growing body of literature suggests that courts and juries are inclined toward division of liability between two strictly non-negligent or “vigilant†parties. However, standard models of liability rules do not provide for vigilance-based sharing of liability. In this paper, we...

Comparative causation is the only tort regime that allows parties to share an accident loss in equilibrium. The sharing of an accident loss between a nonnegligent injurer and his nonnegligent victim spreads activity level and R&D incentives between prospective tortfeasors and their victims. This...

Various issues related to delays and cost overruns in publically funded infrastructure projects are investigated. The study is based on, by far, the largest data-set of 850 projects across seventeen infrastructure sectors. The focus is on the causal factors behind time and cost overruns. [CDE WP...

The aim of this paper is to study the effects of court errors in estimating the harm, on the parties' behaviour regarding the levels of care they take, and their decision to buy the information about the court errors. The analysis is carried out in a unified framework. [CDE-DSE WP no. 97].

The first objective of this paper is to contribute to the debate regarding the desirability of the sharing of liability for the accident loss. The second objective is to extend the efficiency analysis beyond Shavell (1980, 1987) and Miceli (1997), to search for the second-best liability rules....

For liability rules to be efficient, it is important to take into account the full losses suffered by the victims, while deciding on the amount of damage to be paid by the injurers to the victims. While analyzing the efficiency characteristics of the liability rules it is generally assumed that...

Risky products cause two types of costs for society; the accident costs and the insurance costs. Liability rules allocate these costs between the parties involved. The expansion in the scope of product liability over the past thirty years has increased the cost of third-party liability...

In standard models dealing with liability rules, generally, the proportion of accident loss a party is required to bear does not depend upon the 'causation' - the extent to which the care or lack of care on the part of the party contributed to the loss. As a matter of legal doctrine, this...