Screening accident victims
This paper considers victim heterogeneity in harm levels in a bilateral-care model, where harm is private information. In practice, resources are expended on the verification of damages suffered. We establish a sufficient condition for the possibility to accurately deduce the harm level from the observable care choice without spending on verification. For cases in which this condition does not hold, this paper sets out a simple screening mechanism that induces victims to reveal their type truthfully and induces optimal care in equilibrium without verification costs.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Thomas J. Miceli, 2006.
"On Negligence Rules and Self-Selection,"
2006-26, University of Connecticut, Department of Economics.
- Robert Cooter & Winand Emons, 2000.
"Truth-Revealing Mechanisms for Courts,"
Econometric Society World Congress 2000 Contributed Papers
0211, Econometric Society.
- Robert Cooter & Winand Emons, 2003. "Truth-Revealing Mechanisms for Courts," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 259-, June.
- Louis Kaplow & Steven Shavell, 1993.
"Accuracy in the Assessment of Damages,"
NBER Working Papers
4287, National Bureau of Economic Research, Inc.
- Winand Emons & Claude Fluet, 2007.
"Accuracy versus Falsification Costs: The optimal Amount of Evidence under different Procedures,"
dp0702, Universitaet Bern, Departement Volkswirtschaft.
- Claude Fluet, 2009. "Accuracy Versus Falsification Costs: The Optimal Amount of Evidence under Different Procedures," Journal of Law, Economics and Organization, Oxford University Press, vol. 25(1), pages 134-156, May.
- Winand Emons & Claude Fluet, 2007. "Accuracy versus Falsification Costs: the Optimal Amount of Evidence under Different Procedures," Cahiers de recherche 0703, CIRPEE.
- Emons, Winand & Fluet, Claude, 2007. "Accuracy versus Falsification Costs: The Optimal Amount of Evidence under Different Procedures," CEPR Discussion Papers 6150, C.E.P.R. Discussion Papers.
- Mathias Dewatripont & Patrick Bolton, 2005.
ULB Institutional Repository
2013/9543, ULB -- Universite Libre de Bruxelles.
- Steven Shavell, 1989. "Sharing of Information Prior to Settlement or Litigation," RAND Journal of Economics, The RAND Corporation, vol. 20(2), pages 183-195, Summer.
- A. Mitchell Polinsky & Yeon-Koo Che, 1991.
"Decoupling Liability: Optimal Incentives for Care and Litigation,"
RAND Journal of Economics,
The RAND Corporation, vol. 22(4), pages 562-570, Winter.
- A. Mitchell Polinsky & Yeon-Koo Che, 1991. "Decoupling Liability: Optimal Incentives for Care and Litigation," NBER Working Papers 3634, National Bureau of Economic Research, Inc.
- Dari-Mattiacci Giuseppe, 2006. "On the Optimal Scope of Negligence," Review of Law & Economics, De Gruyter, vol. 1(3), pages 331-364, January.
- Hay, Bruce L, 1994. "Civil Discovery: Its Effects and Optimal Scope," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 481-515, January.
- Polinsky, A Mitchell & Rubinfeld, Daniel L, 1988. "The Welfare Implications of Costly Litigation for the Level of Liability," The Journal of Legal Studies, University of Chicago Press, vol. 17(1), pages 151-64, January.
- Xinyu Hua & Kathryn E. Spier, 2005. "Information and Externalities in Sequential Litigation," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 161(2), pages 215-, June.
- Spier, Kathryn E, 1994. "Settlement Bargaining and the Design of Damage Awards," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(1), pages 84-95, April.
- Amy Farmer & Paul Pecorino, 2005. "Civil Litigation with Mandatory Discovery and Voluntary Transmission of Private Information," The Journal of Legal Studies, University of Chicago Press, vol. 34(1), pages 137-159, 01.
- Curran, Christopher, 1992. "The spread of the comparative negligence rule in the United States," International Review of Law and Economics, Elsevier, vol. 12(3), pages 317-332, September.
- Farmer, Amy & Pecorino, Paul, 1999. " Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-88, September.
- Kim, Jeonghyun & Feldman, Allan M., 2006. "Victim or injurer, small car or SUV: Tort liability rules under role-type uncertainty," International Review of Law and Economics, Elsevier, vol. 26(4), pages 455-477, December.
When requesting a correction, please mention this item's handle: RePEc:eee:irlaec:v:29:y:2009:i:3:p:272-280. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.