Ambiguous Beliefs on Damages and Civil Liability Theories"
AbstractThis paper analyzes the meaning of comparing the economic performance of strict liability and negligence rule in a unilateral standard accident model under Knightian uncertainty. It focuses on the cost expectation of major harm on which the injurers form beliefs. It shows first that, when the Court agree with the regulator, whatever the liability regime, the first best level of care is never reached but under both regimes the tortfeasors define the same level of care. Second, when, judge and regulator disagree, it is impossible to discriminate among liability standards because the issue depends on the injurer's optimism degree.
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Date of creation: Sep 2013
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strict liability; negligence rule; ambiguity theory; uncertainty; accident model;
Other versions of this item:
- Gérard Mondello, 2013. "Ambiguous Beliefs on Damages and Civil Liability Theories," Working Papers 2013.75, Fondazione Eni Enrico Mattei.
- 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
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