The Equivalence of Strict Liability and Negligence Rule: A "Trompe l'oeil" Perspective
Abstract
This paper analyzes the difficulties of comparing the respective effectiveness of two among the most important liability regimes in tort law: rule of negligence and strict liability. Starting from the standard Shavellian unilateral accident scheme, I show that matching up liability regime on their capacity to provide the highest level of safety is ineffective. This demonstration lies on two components. The first one gathers some results drawn from literature that introduces uncertainty. The second one takes into consideration the beliefs of agents and their aversion to ambiguity. The model applies uncertainty to the level of maximum damage. This demonstration reinforces the previous result. Hence, both regime applies on specific tort question and comparing their individual efficiency needs to call for other components as the transaction costs associated to the burden of evidence, the fairness between victims and injurers, etc.Download Info
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Paper provided by GREDEG CNRS, University of Nice-Sophia Antipolis in its series GREDEG Working Papers with number 2012-03.Length: 31 pages
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:gre:wpaper:2012-03
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Related research
Keywords: Strict liability; Negligence rule; Ambiguity theory; Uncertainty; Accident Model;Other versions of this item:
- Gérard Mondello, 2012. "The Equivalence of Strict Liability and Negligence Rule: A « Trompe l'œil » Perspective," Working Papers 2012.08, Fondazione Eni Enrico Mattei.
- Gérard Mondello, 2012. "The Equivalence of Strict Liability and Negligence Rule: A " Trompe l'œil " Perspective," Post-Print hal-00727223, HAL.
- K0 - Law and Economics - - General
- K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
References
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MPRA Paper
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Sonderforschungsbereich 504 Publications
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