Un effet pervers de la responsabilité limitée
Although legal restrictions limiting the workers’ liability are made to increase their welfare, we show that they may lead to a perverse effect when more productive workers cross subsidize less productive workers. A generalized agency model is analyzed and used to show that exonerating a wealthy agent from liability for damages caused during the execution of the contract decreases the more productive workers’ expected utility in the pooling equilibrium of the combined model.
Volume (Year): 72 (2006)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm|
When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_723_0265. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.