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This paper reports a rigorous experimental test of Pareto-damaging behaviors. We introduce a new graphical representation of dictator games with step-shaped sets of feasible payoffs to persons self and other on which strongly Pareto efficient allocations involve substantial inequality. The...
Persistent link: https://www.econbiz.de/10014027805
Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is … externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability …
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and by considering individuals' situation and economic circumstances. The economic theory provides determinants that are … obligations of insurance intermediaries and a liability rule to sanction violations. In order to interpret and substantiate the …
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We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the … results is the observation that high prices for spare parts entail a negative external effect inasmuch as liability …
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