Jump to ContentJump to Main Navigation

Online

49,00 € / $74.00*

* Prices subject to change. Shipping costs will be added if applicable.
Publication Date:
December 2007
ISSN:
1555-5879
DOI:
10.2202/1555-5879.1107

See all formats and pricing

Online
Individual Subscription Online only
Euro [D] 49.00
RRP for USA, Canada, Mexico
US$ 74.00 *
Print
Individual Subscription Online only
Euro [D] 176.00
RRP for USA, Canada, Mexico
US$ 237.00 *
Print + Online
Individual Subscription Online only
Euro [D] 212.00
RRP for USA, Canada, Mexico
US$ 285.00 *
*Prices subject to change. Shipping costs will be added if applicable.

Editor-in-Chief: Parisi, Francesco

Ed. by Cooter, Robert D. / Gómez Pomar, Fernando / Kornhauser, Lewis A.

1 Issue per year

VolumeIssuePage

Comparative Causation and Economic Efficiency: When Activity Levels are Constant

Ram Singh

1Delhi School of Economics and Department of Economics, Harvard University

Citation Information: Review of Law & Economics. Volume 3, Issue 2, Pages 383–406, ISSN (Online) 1555-5879, DOI: 10.2202/1555-5879.1107, December 2007

Publication History:
Published Online:
2007-12-11

In some recent works, negligence-based liability has been severely criticized. It has been argued that negligence-based liability does not form a convincing basis for liability assignment. Causation-based liability has been proposed as an alternative basis of liability determination. Parisi and Fon (2004) have studied the efficiency properties of the causal apportionment of liability. The authors have shown that when care levels as well as activity levels of the parties affect the causation of an accident, causation based liability does not provide efficient incentives for the parties. In this paper, we assume the activity levels to be constant. Under this assumption, we have demonstrated the existence of liability rules that are efficient and at the same time `consistent' with the requirement of causation liability. In addition, it is shown that under these rules the equilibrium outcome is unique. The analysis has been undertaken in a very general framework.

Comments (0)

Please log in or register to comment.