Medical malpractice and physician liability under a negligence rule
AbstractA model of costly medical malpractice claims, based on Bayes Rule, is developed to examine the effects of physicians being liable for actual damage under a negligence rule. This model is consistent with empirical evidence concerning the pattern of claims. It is shown that compensating actual damage does not provide physicians with appropriate incentives to spend the second best optimal amount of time with patients or to treat the second best optimal number of patients. As a result, too much medical malpractice occurs relative to the second best social optimum.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Law and Economics.
Volume (Year): 31 (2011)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/irle
Medical malpractice Liability;
Other versions of this item:
- Wright, Donald J., 2011. "Medical Malpractice and Physician Liability Under a Negligence Rule," Working Papers 2011-04, University of Sydney, School of Economics.
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