Medical Malpractice and Physician Liability Under a Negligence Rule
AbstractA model of costly medical malpractice claims, based on Bayes Rule, is developed to examine the effects of physicians being liable for actual damage under a negligence rule. This model is consistent with empirical evidence concerning the pattern of claims. It is shown that compensating actual damage does not provide physicians with appropriate incentives to spend the second best optimal amount of time with patients or to treat the second best optimal number of patients. As a result, too much medical malpractice occurs relative to the second best social optimum.
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Bibliographic InfoPaper provided by University of Sydney, School of Economics in its series Working Papers with number 2011-04.
Date of creation: Mar 2011
Date of revision:
Medical Malpractice; Liability;
Other versions of this item:
- Donald J., Wright, 2011. "Medical malpractice and physician liability under a negligence rule," International Review of Law and Economics, Elsevier, vol. 31(3), pages 205-211, September.
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.:
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