We consider the optimal liability rule in the case of accidents by fully autonomous vehicles. We show that when due activity is not enforceable, it is socially optimal to apply the strict liability rule to the human operator who determines the activity level and to apply the negligence rule to...

We formulate a pretrial negotiation problem as an infinite-horizon bargaining model with one-sided uncertainty and alternating offers, with the informed party having an outside option. The plaintiff has private information and also has an outside option of "going to court." The defendant moves...