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On the Similarity of Bilateral Harm and Unilateral Harm with Role-Type Uncertainty

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  • Friehe Tim

    (Eberhard Karls University, Tuebingen)

Abstract

This paper shows that unilateral-harm contexts with role-type uncertainty can create incentives similar to bilateral-harm contexts. For this purpose, we show that the result of Dharmapala and Hoffmann (2005), namely that standard liability rules do not lead to efficient care choices by injurer and victim if precaution costs are interdependent and harm is unilateral whereas they can in the case of bilateral harm, depends on role-type certainty.

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File URL: http://www.degruyter.com/view/j/rle.2007.3.2/rle.2007.3.2.1108/rle.2007.3.2.1108.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Law & Economics.

Volume (Year): 3 (2007)
Issue (Month): 2 (December)
Pages: 553-580

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Handle: RePEc:bpj:rlecon:v:3:y:2007:i:2:n:13

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Cited by:
  1. Dari-Mattiacci, Giuseppe & Langlais, Eric, 2012. "Social Wealth and Optimal Care," International Review of Law and Economics, Elsevier, Elsevier, vol. 32(2), pages 271-284.
  2. Tim Friehe & Eric Langlais, 2014. "On the Political Economy of Public Safety Investments," EconomiX Working Papers 2014-8, University of Paris West - Nanterre la Défense, EconomiX.

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