This is a survey of legal liability for accidents. Three general aspects of accident liability are addressed. The first … is the effect of liability on incentives, both whether to engage in activities (for instance, whether to drive) and how …-bearing and insurance, for the liability system acts as an implicit insurer for accident victims and it imposes risk on potential …

viewing the liability rule (in torts and in its cognates) as a “second best” way of mimicking markets when markets “will not … work,” or “are not available.” I want to claim a more significant economic role for the liability rule, and hence for torts …