The Filtering Effect of Sharing Rules
Abstract
Sharing rules have a filtering effect on violations: they prevent the most harmful violations and let the least harmful ones occur. We show under what conditions the filtering effect improves social welfare and argue that this may explain why, in most areas of the law, sharing rules are, in general, preferred to rules that entirely burden one party. Our analysis applies to comparative negligence, communal liability, the allocation of police investigation efforts, contract remedies for non-verifiable breaches such as those that may occur in marriage and employment contracts, and to the distribution of shares in partnerships.Download Info
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Paper provided by Utrecht School of Economics in its series Working Papers with number 04-17.Length: 23 pages
Date of creation: Jul 2004
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Handle: RePEc:use:tkiwps:0417
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Keywords: comparative negligence; law enforcement; divorce; employment contracts; theory of the firm.;Other versions of this item:
- Giuseppe Dari-Mattiacci & Gerrit De Geest, 2005. "The Filtering Effect of Sharing Rules," The Journal of Legal Studies, University of Chicago Press, vol. 34(1), pages 207-237, 01.
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-29 (All new papers)
- NEP-LAW-2005-10-29 (Law & Economics)
- NEP-REG-2005-10-29 (Regulation)
References
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