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Sequential torts and bilateral harm

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  • Friehe, Tim

Abstract

This paper analyzes care incentives of individuals in a bilateral-harm setting if care choices are sequential. We find that the efficient outcome is not guaranteed under any liability rule considered, irrespective of whether information is perfect or imperfect. Furthermore, it is no longer possible to generally rank liability rules according to their induced social costs. These findings are in strong contrast to the sequential-torts setting in which harm is unilateral.

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Bibliographic Info

Article provided by Elsevier in its journal International Review of Law and Economics.

Volume (Year): 29 (2009)
Issue (Month): 2 (June)
Pages: 161-168

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Handle: RePEc:eee:irlaec:v:29:y:2009:i:2:p:161-168

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Web page: http://www.elsevier.com/locate/irle

Related research

Keywords: Care incentives Sequential care Bilateral harm Tort law;

References

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  1. Endres, Alfred, 1992. "Strategic behavior under tort law," International Review of Law and Economics, Elsevier, Elsevier, vol. 12(3), pages 377-380, September.
  2. Laszlo Goerke, 2003. "Road Traffic and Efficient Fines," European Journal of Law and Economics, Springer, vol. 15(1), pages 65-84, January.
  3. Winter, Harold, 1994. "Sequential Torts with imperfect information," International Review of Law and Economics, Elsevier, Elsevier, vol. 14(1), pages 35-40, March.
  4. Dhammika Dharmapala & Sandra A. Hoffmann, 2002. "Bilateral Accidents with Intrinsically Interdependent Costs of Precaution," Working papers 2002-11, University of Connecticut, Department of Economics.
  5. Arlen, Jennifer H., 1990. "Re-examining liability rules when injurers as well as victims suffer losses," International Review of Law and Economics, Elsevier, Elsevier, vol. 10(3), pages 233-239, December.
  6. Leong, Avon K., 1989. "Liability rules when injurers as well as victims suffer losses," International Review of Law and Economics, Elsevier, Elsevier, vol. 9(1), pages 105-111, June.
  7. Rea, Samuel Jr., 1987. "The economics of comparative negligence," International Review of Law and Economics, Elsevier, Elsevier, vol. 7(2), pages 149-162, December.
  8. Shavell, Steven, 2007. "Liability for Accidents," Handbook of Law and Economics, Elsevier, Elsevier.
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Cited by:
  1. Darri-Mattiacci, Giuseppe & Langlais, Eric, 2008. "Social wealth and optimal care," MPRA Paper 9418, University Library of Munich, Germany.
  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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