Danzon, Patricia M. - In: Handbook of health economics : volume 1, part B, (pp. 1339-1404). 2000
Physicians are traditionally liable under a negligence rule of liability. Economic analysis of liability rules … physicians is sued per year. These discrepancies between the theory and actual operation of the negligence system arise primarily … incentives for physicians to practice defensive medicine and incentives for plaintiffs and defendants to invest in litigation …