losses on strangers. Three legal environments are compared: no law, strict liability for the harm caused to others, and an … nondeterrent. We investigate how legal obligations and social norms interact. Our results show that liability rules strengthen pro …-social behavior and suggest that strict liability has a greater effect than the negligence rule …

. Consonant with our theory, we obtain that limited liability stimulates subjects' investment in prevention in comparison to …We develop a formal model to compare the incentive effect of strict liability rules in a risky and ambiguous … unlimited liability when only risk matters. Besides, subjects opt for more prevention under the regime of unlimited liability …

the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence … firm to compensate potential victims. In contrast with theory, prevention rates absent liability are much higher and …We compare the performance of liability rules for managing environmental disasters when third parties are harmed and …

the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence … firm to compensate potential victims. In contrast with theory, prevention rates absent liability are much higher and …We compare the performance of liability rules for managing environmental disasters when third parties are harmed and …