Do Exposure Suits Produce a "Race to File"? An Economic Analysis of a Tort for Risk
AbstractConventional tort law does not allow exposure victims to seek compensation until they develop symptoms of illness. Because this may bar recovery if the injurer is judgment proof, some have advocated allowing victims to sue at exposure. However, critics charge that such a tort for risk would create a ``race to file.'' We show that a race may or may not occur in equilibrium, and that when it does occur, not all victims choose to file even if bankruptcy is an inevitable result. We examine the consequences of the possible equilibria on compensation of victims, litigation costs, and injurer care.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 36 (2005)
Issue (Month): 3 (Autumn)
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Web page: http://www.rje.org
Other versions of this item:
- Thomas J. Miceli & Kathleen Segerson, 2004. "Do Exposure Suits Produce a "Race to File"? An Economic Analysis of a Tort for Risk," Working papers, University of Connecticut, Department of Economics 2004-25, University of Connecticut, Department of Economics.
- Thomas J. Miceli & Kathleen Segerson, 2001. "Do Exposure Suits Produce a 'Race to File'? An Economic Analysis of a Tort for Risk," Working papers, University of Connecticut, Department of Economics 2002-42, University of Connecticut, Department of Economics, revised Jun 2004.
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
- K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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