On the incentive effects of damage averaging in tort law
It has been generally accepted for unilateral-care models that care incentives are not affected by the use of either accurate damages or average damages if injurers lack knowledge of the precise damage level they might cause. This paper shows that in bilateral-care models with heterogeneous victims, consequences of averages as damage measure are critically dependent on the weighing of respective harm levels. Importantly, we establish that there is an average measure which allows the attainment of efficient care in the bilateral-care framework.
Volume (Year): 11 (2007)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Ram Singh, 2003. "Efficiency of 'Simple' Liability Rules When Courts Make Erroneous Estimation of the Damage," European Journal of Law and Economics, Springer, vol. 16(1), pages 39-58, July.
- Marceau, Nicolas & Mongrain, Steeve, 2003.
"Damage averaging and the formation of class action suits,"
International Review of Law and Economics,
Elsevier, vol. 23(1), pages 63-74, March.
- Nicolas Marceau & Steeve Mongrain, 2001. "Damage Averaging and the Formation of Class Action Suits," Cahiers de recherche CREFE / CREFE Working Papers 139, CREFE, Université du Québec à Montréal.
- Miceli, Thomas J., 1997. "Economics of the Law: Torts, Contracts, Property, Litigation," OUP Catalogue, Oxford University Press, number 9780195103908, March.
- Kaplow, Louis & Shavell, Steven, 1996.
"Accuracy in the Assessment of Damages,"
Journal of Law and Economics,
University of Chicago Press, vol. 39(1), pages 191-210, April.
- Thomas J. Miceli, 2006.
"On Negligence Rules and Self-Selection,"
2006-26, University of Connecticut, Department of Economics.
- Juan José Ganuza & Fernando Gómez, 2002. "Caution, children crossing: Heterogeneity of victim's cost of care and negligence rule," Economics Working Papers 666, Department of Economics and Business, Universitat Pompeu Fabra.
- Che, Yeon-Koo, 1996. "Equilibrium formation of class action suits," Journal of Public Economics, Elsevier, vol. 62(3), pages 339-361, November.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07k10002. 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: (John P. Conley)
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.