Stremitzer, Alexander; Tabbach, Avraham D. - 2009
We analyze liability rules in a setting where injurers are potentially insolvent and where negligence standards may … deviate from the socially optimal level. We show that proportional liability, which sets the measure of damages equal to the … negligence-based rules. Moreover, proportional liability outperforms strict liability if the standard of due care is not set too …
