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Medical malpractice and physician liability under a negligence rule

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  • Donald J., Wright

Abstract

A 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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:irlaec:v:31:y:2011:i:3:p:205-211
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    Cited by:

    1. Chen, Yongmin & Li, Jianpei & Zhang, Jin, 2017. "Liability in Markets for Credence Goods," MPRA Paper 80206, University Library of Munich, Germany.

    More about this item

    Keywords

    Medical malpractice Liability;

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