parties pay for harm done--that is, by liability rules? In this article, we present a systematic economic analysis of this … fundamental question. Our primary object is to explain why liability rules are often employed to protect individuals against … course of our analysis, we suggest that a variety of commonly held beliefs about property and liability rules are in error …

A fundamental legal problem is whether property rights should be protected by property rules or by liability rules. In … this Article, we provide a systematic economic analysis of the choice between property and liability rules. We answer a … basic question: why is it that liability rules are commonly used in the context of harmful externalities (such as pollution …

covered. The first is legal liability for harm. Here we discuss liability rules as incentives to reduce risk, issues of risk …-bearing and insurance, and the costs of the liability system. Second, we consider property law, where we address the nature and …