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‘Causation-consistent’ liability, economic efficiency and the law of torts

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  • Singh, Ram

Abstract

Some legal scholars have argued that the standard modeling of liability rules is inconsistent with the causation requirement of the law of torts. It has been claimed that under the doctrinal notion of causation liability, an injurer is liable only if he was negligent. Moreover, he is liable for only that loss which can be attributed to his negligence and not the entire loss, as is the case with the standard modeling of liability rules. Our analysis shows that the ‘causation-consistent’ liability provides interesting insights on several issues concerning efficiency as well as compensation. Paper shows that when care is bilateral, causation-consistent liability provides a basis for efficiency characterization of the entire class of liability rules. Moreover, it remains a basis for the efficiency classification of liability rules even for bilateral-risk accidents.

Suggested Citation

  • Singh, Ram, 2007. "‘Causation-consistent’ liability, economic efficiency and the law of torts," International Review of Law and Economics, Elsevier, vol. 27(2), pages 179-203.
    • Handle: RePEc:eee:irlaec:v:27:y:2007:i:2:p:179-203
    DOI: 10.1016/j.irle.2007.06.007
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    Citations

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    Cited by:

    1. Parisi Francesco & Singh Ram, 2010. "The Efficiency of Comparative Causation," Review of Law & Economics, De Gruyter, vol. 6(2), pages 219-245, September.
    2. Ram Singh, 2004. "‘Full’ Compensation Criteria: An Enquiry into Relative Merits," European Journal of Law and Economics, Springer, vol. 18(2), pages 223-237, September.
    3. Feldman Allan & Singh Ram, 2021. "Equilibria Under Negligence Liability: How the Standard Claims Fall Apart," Review of Law & Economics, De Gruyter, vol. 17(1), pages 1-33, March.
    4. Samuel Ferey & Pierre Dehez, 2016. "Multiple Causation, Apportionment, and the Shapley Value," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 143-171.
    5. Allan M Feldman & Ram Singh, 2021. "Equilibria under Liability Rules: How the standard claims fall apart," Working papers 315, Centre for Development Economics, Delhi School of Economics.
    6. Ram Singh, 2006. "On the Existence and Efficiency of Equilibria under Liability Rules," Working papers 150, Centre for Development Economics, Delhi School of Economics.
    7. Allan M. Feldman & Ram Singh, 2009. "Comparative Vigilance," American Law and Economics Review, American Law and Economics Association, vol. 11(1), pages 134-161.
    8. FRANCESCO PARISI & Ram Singh, 2009. "Efficiency Of Equilibria Under Comparative Causation," Working papers 179, Centre for Development Economics, Delhi School of Economics.

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    More about this item

    Keywords

    Causation requirement; Causation-consistent liability; Social costs; Efficient liability rules; Unilateral-risk; Bilateral-risk; Nash equilibrium;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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