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Multiple Causes and Stacked Inferences

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  • J. Shahar Dillbary

Abstract

When an accident is a mystery - when it is not clear what happened - courts often rely on stacked inferences. Such inferences are subject to much debate and are even prohibited by some jurisdictions. This article reveals that the doctrine of res ipsa loquitur ("the thing speaks for itself") is a form of stacked inferences and that despite its affiliation, it has been widely accepted. The article further shows that application of res ipsa loquitur in cases involving multiple actors can adversely affect precaution and activity levels. It concludes with a call for a careful application of res ipsa loquitur in cases involving multiple actors.

Suggested Citation

  • J. Shahar Dillbary, 2020. "Multiple Causes and Stacked Inferences," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(1), pages 54-72.
  • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2020-0009
    DOI: 10.1628/jite-2020-0009
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    More about this item

    Keywords

    multiple actors; stacked inferences; actual causation; false positives; deterrence; collusion; indemnity; game theory;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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