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Comparative Causation

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  • Francesco Parisi
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    Abstract

    This article examines the criterion of comparative causation according to which an accident loss is apportioned between a faultless tortfeasor and an innocent victim on the basis of their relative causal contributions to the loss. To explain the rule's structural features, we consider a scenario where liability is allocated on the basis of causation, regardless of fault. While this model brings to light several interesting features, it also unveils the limits of such a criterion with respect to induced activity and care levels. Next we extend the model to consider the comparative causation rule in conjunction with negligence rules. Applying the comparative causation rule under a negligence regime induces a combination of incentives that is not provided by any known liability rule. Copyright 2004, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal American Law and Economics Review.

    Volume (Year): 6 (2004)
    Issue (Month): 2 ()
    Pages: 345-368

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    Handle: RePEc:oup:amlawe:v:6:y:2004:i:2:p:345-368

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    Cited by:
    1. Allan M Feldman & Ram Singh, 2008. "Comparative Vigilance," Working Papers 2008-9, Brown University, Department of Economics.
    2. Qi Zhou, 2009. "Economic analysis of the legal standard for deceit in English tort law," European Journal of Law and Economics, Springer, vol. 28(1), pages 83-102, August.
    3. Ram Singh, 2006. "On the Existence and Efficiency of Equilibria under Liability Rules," Working papers 150, Centre for Development Economics, Delhi School of Economics.
    4. Nuno Garoupa, 2009. "Least-Cost Avoidance: The Tragedy of Common Safety," Journal of Law, Economics and Organization, Oxford University Press, vol. 25(1), pages 235-261, May.
    5. Ram Singh, 2005. "Comparative Causation -- A Re-examination," Working papers 139, Centre for Development Economics, Delhi School of Economics.
    6. FRANCESCO PARISI & Ram Singh, 2009. "Efficiency Of Equilibria Under Comparative Causation," Working papers 179, Centre for Development Economics, Delhi School of Economics.
    7. Allan M Feldman & Ram Singh, 2008. "Comparative Vigilance: a Simple Guide," Working Papers 2008-11, Brown University, Department of Economics.

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