that this informational role of tort law is more pronounced under the rule of negligence than under strict liability, since … production of information under the negligence rule may render the negligence rule more efficient than strict liability when the … liability. Under strict liability, by contrast, the injurer will take out insurance, which induces moral hazard. The rule of …

that this informational role of tort law is more pronounced under the rule of negligence than under strict liability, since … production of information under the negligence rule may render the negligence rule more efficient than strict liability when the … liability. Under strict liability, by contrast, the injurer will take out insurance, which induces moral hazard. The rule of …

This article shows that it may be socially optimal to grant accident victims less than full compensation. In our … framework, firms are liable under product liability but also invest in care to prevent consumers switching to competitors … optimal to reduce liability below full compensation in order to adjust firms’ care incentives. …

This article shows that it may be socially optimal to grant accident victims less than full compensation. In our … framework, firms are liable under product liability but also invest in care to prevent consumers switching to competitors … optimal to reduce liability below full compensation in order to adjust firms' care incentives. -- Tort law ; product liability …

liability system is important because it is a determinant of the firm's full marginal cost, which consists of both manufacturing … cost and liability cost. If the firm does not bear substantial liability for a consumer's harm, then the firm's marginal … does bear substantial liability for a consumer's harm, then the firm's marginal cost consists of both manufacturing cost …

This paper develops a model showing how the environmental liability regime and the precision of the disclosed … distinguish between a negligence regime and strict liability. The results suggest that if there is no EPI manipulation but only a … lack of precision of the disclosed EPI, a negligence rule induces lower actual pollution levels than strict liability even …