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On the Redesign of Accident Liability for the World of Autonomous Vehicles

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  • Steven Shavell

Abstract

This article studies a model of liability for automobile accidents in the coming world in which automobiles will be autonomous. In that world, travelers will not be drivers, rendering liability premised on driver fault irrelevant as a means of reducing accident dangers. Moreover, no other conventional principle of individual or of manufacturer liability would serve well to do so. Indeed, in the model considered, strict manufacturer liability, recommended by many commentators, would actually tend to leave accident risks unchanged from their levels in the absence of liability. However, a new form of strict liability––the hallmark of which is that damages would be paid to the state––would be superior to conventional rules of liability in alleviating accident risks and would be easy to administer.

Suggested Citation

  • Steven Shavell, 2019. "On the Redesign of Accident Liability for the World of Autonomous Vehicles," NBER Working Papers 26220, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26220
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    References listed on IDEAS

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    1. Aaron S. Edlin & Pinar Karaca-Mandic, 2006. "The Accident Externality from Driving," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 931-955, October.
    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. Bansal, Prateek & Kockelman, Kara M., 2017. "Forecasting Americans’ long-term adoption of connected and autonomous vehicle technologies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 49-63.
    4. Jerry Green, 1976. "On the Optimal Structure of Liability Laws," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 553-574, Autumn.
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    Cited by:

    1. Andrea Bertolini & Massimo Riccaboni, 2021. "Grounding the case for a European approach to the regulation of automated driving: the technology-selection effect of liability rules," European Journal of Law and Economics, Springer, vol. 51(2), pages 243-284, April.
    2. Mohamed Alawadhi & Jumah Almazrouie & Mohammed Kamil & Khalil Abdelrazek Khalil, 0. "Review and analysis of the importance of autonomous vehicles liability: a systematic literature review," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-23.
    3. Mohamed Alawadhi & Jumah Almazrouie & Mohammed Kamil & Khalil Abdelrazek Khalil, 2020. "Review and analysis of the importance of autonomous vehicles liability: a systematic literature review," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(6), pages 1227-1249, December.

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    More about this item

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K2 - Law and Economics - - Regulation and Business Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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