Advanced Search
MyIDEAS: Login

Régulation des risques et insolvabilité: le rôle de la responsabilité pour faute en information imparfaite

Contents:

Author Info

Abstract

Avec la règle de la responsabilité sans faute, un agent potentiellement insolvable est incité à prendre insuffisammant de précautions dans la pratique d'activités imposant des risques à des tiers. La règle plus courante de la responsabilité pour faute peut pallier ce problème puisqu'elle conditionne la responsabilité légale sur le comportement de prévention de l'agent, observé ex post. Cet article généralise l'analyse de la responsabilité pour faute au cas où la cour n'obtient qu'une information imparfaite sur le comportement de l'agent. En particulier, je montre que le critère juridique de la prépondérance de preuve est compatible avec l'efficacité incitative. Under the tort law strict liability rule, a potentially judgment proof agent will take suboptimal care in the conduct of risk generating activities, thereby imposing excessive risks on third parties. The more common negligence rule can alleviate this problem by conditioning liability on the agent's actual level of care, observed ex post. This paper extends the analysis of the negligence rule to the case where courts can obtain only imperfect information on the level of care. In particular, I show that the legal practice concerning standards of proof is compatible with incentive efficiency.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.unites.uqam.ca/eco/cahiers/wp9802.pdf
Our checks indicate that this address may not be valid because: 500 Internal Server Error (http://www.unites.uqam.ca/eco/cahiers/wp9802.pdf [301 Moved Permanently]--> http://www.economie.uqam.ca/cahiers/wp9802.pdf [301 Moved Permanently]--> http://economie.esg.uqam.ca/cahiers/wp9802.pdf). If this is indeed the case, please notify (Stéphane Pallage)
File Function: Main text
Download Restriction: no

Bibliographic Info

Paper provided by Université du Québec à Montréal, Département des sciences économiques in its series Cahiers de recherche du Département des sciences économiques, UQAM with number 9802.

as in new window
Length: 26
Date of creation: Nov 1998
Date of revision:
Handle: RePEc:cre:uqamwp:9802

Contact details of provider:
Postal: P.O. Box 8888, Downtown Station, Montreal (Canada) Quebec, H3C 3P8
Phone: (514) 987-4114
Fax: (514) 987-8494
Email:
Web page: http://www.uqam.ca/economie/
More information through EDIRC

Related research

Keywords: negligence rule; strict liability rule; moral hazard;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Marcel Boyer & Jean-Jacques Laffont, 1995. "Environmental Protection, Producer Insolvency and Lender Liability," CIRANO Working Papers 95s-50, CIRANO.
  2. Peter A. Diamond, 1974. "Single Activity Accidents," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 107-164, January.
  3. Dominique Demougin & Claude Fluet, 1998. "Mechanism Sufficient Statistic in the Risk-Neutral Agency Problem," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(4), pages 622-, December.
  4. Rochet, Jean-Charles, 1992. "Capital requirements and the behaviour of commercial banks," European Economic Review, Elsevier, vol. 36(5), pages 1137-1170, June.
  5. Park, Eun-Soo, 1995. "Incentive Contracting under Limited Liability," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(3), pages 477-90, Fall.
  6. Shavell, S., 1986. "The judgment proof problem," International Review of Law and Economics, Elsevier, vol. 6(1), pages 45-58, June.
  7. Son Ku Kim, 1997. "Limited Liability and Bonus Contracts," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(4), pages 899-913, December.
  8. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
  9. Dionne, G. & Gagne, R. & Gagnon, F. & Vanasse, C., 1993. "Debt, Moral Hazard and Airline Safety : An Empirical Evidence," Cahiers de recherche 9309, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  10. Brander, James A & Spencer, Barbara J, 1989. "Moral Hazard and Limited Liability: Implications for the Theory of the Firm," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 833-49, November.
  11. Kolstad, Charles D & Ulen, Thomas S & Johnson, Gary V, 1990. "Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements?," American Economic Review, American Economic Association, vol. 80(4), pages 888-901, September.
  12. Rogerson, William P, 1985. "The First-Order Approach to Principal-Agent Problems," Econometrica, Econometric Society, vol. 53(6), pages 1357-67, November.
  13. Innes, Robert D., 1990. "Limited liability and incentive contracting with ex-ante action choices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 45-67, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Sandrine SPAETER, 2002. "Principe de precaution et comportements preventifs des firmes face aux risques environnementaux," Working Papers of BETA 2002-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Claude Fluet, 2006. "Liability Rules under Evidentiary Uncertainty," Cahiers de recherche 0606, CIRPEE.
  3. Claude Fluet, 2003. "Enforcing Contracts: Should Courts Seek the Truth?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(1), pages 49-, March.
  4. Claude Fluet, 2002. "Assurance de responsabilité et aléa moral dans les régimes de responsabilité objective et pour faute," Cahiers de recherche CREFE / CREFE Working Papers 149, CREFE, Université du Québec à Montréal.
  5. Dominique Demougin & Claude Fluet, 2000. "Prepondeance of the Evidence: Tort Rules and the Efficient Standard of Proof," Cahiers de recherche CREFE / CREFE Working Papers 120, CREFE, Université du Québec à Montréal.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cre:uqamwp:9802. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stéphane Pallage).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.