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Comparative Vigilance

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  • Allan M. Feldman
  • Ram Singh

Abstract

A growing body of literature suggests that courts and juries are inclined toward division of liability between two strictly non-negligent or "vigilant" parties. In this paper, we explore the economic efficiency of liability rules based on comparative vigilance. We devise rules that are efficient and that reward vigilance. Commonly used liability rules have discontinuous liability shares. We develop a liability rule, which we call the "super-symmetric rule," that is both efficient and continuous, that is based on comparative negligence when both parties are negligent and on comparative vigilance when both parties are vigilant, and that is always responsive to increased care. Copyright 2009, Oxford University Press.

Suggested Citation

  • Allan M. Feldman & Ram Singh, 2009. "Comparative Vigilance," American Law and Economics Review, Oxford University Press, vol. 11(1), pages 134-161.
    • Handle: RePEc:oup:amlawe:v:11:y:2009:i:1:p:134-161
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    References listed on IDEAS

    as
    1. Ram Singh, 2006. "On the Existence and Efficiency of Equilibria under Liability Rules," Working papers 150, Centre for Development Economics, Delhi School of Economics.
    2. Allan M. Feldman & Jeonghyun Kim, 2005. "The Hand Rule and United States v. Carroll Towing Co. Reconsidered," American Law and Economics Review, Oxford University Press, vol. 7(2), pages 523-543.
    3. Richard A. Easterlin, 1992. "Analysis," Challenge, Taylor & Francis Journals, vol. 35(4), pages 51-53, July.
    4. 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.
    5. Singh, Ram, 2007. "‘Causation-consistent’ liability, economic efficiency and the law of torts," International Review of Law and Economics, Elsevier, vol. 27(2), pages 179-203.
    6. Peter A. Diamond, 1974. "Single Activity Accidents," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 107-164, January.
    7. Kaplow, Louis, 1995. "A Model of the Optimal Complexity of Legal Rules," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 150-163, April.
    8. Allan M. Feldman & Jeonghyun Kim, 2002. "The Hand Rule and United States v. Carroll Towing Co. Reconsidered," Working Papers 2002-27, Brown University, Department of Economics.
    9. Yu-Ping Liao & Michelle J. White, 2002. "No-Fault for Motor Vehicles: An Economic Analysis," American Law and Economics Review, Oxford University Press, vol. 4(2), pages 258-294.
    10. Allan M. Feldman & Ram Singh, 2009. "Comparative Vigilance," American Law and Economics Review, Oxford University Press, vol. 11(1), pages 134-161.
    11. Rea, Samuel Jr., 1987. "The economics of comparative negligence," International Review of Law and Economics, Elsevier, vol. 7(2), pages 149-162, December.
    12. Jeonghyun Kim, 2004. "A Complete Characterization of Efficient Liability Rules: Comment," Journal of Economics, Springer, vol. 81(1), pages 61-75, January.
    13. Feldman, Allan M. & Frost, John M., 1998. "A simple model of efficient tort liability rules," International Review of Law and Economics, Elsevier, vol. 18(2), pages 201-215, June.
    14. Satish K. Jain & Ram Singh, 2002. "Efficient Liability Rules: Complete Characterization," Journal of Economics, Springer, vol. 75(2), pages 105-124, March.
    15. Kahan, Marcel, 1989. "Causation and Incentives to Take Care under the Negligence Rule," The Journal of Legal Studies, University of Chicago Press, vol. 18(2), pages 427-447, June.
    16. Oren Bar-Gill & Omri Ben-Shahar, 2003. "The Uneasy Case for Comparative Negligence," American Law and Economics Review, Oxford University Press, vol. 5(2), pages 433-469, August.
    17. Miceli, Thomas J., 1997. "Economics of the Law: Torts, Contracts, Property, Litigation," OUP Catalogue, Oxford University Press, number 9780195103908, Decembrie.
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    Citations

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    Cited by:

    1. Parisi Francesco & Singh Ram, 2010. "The Efficiency of Comparative Causation," Review of Law & Economics, De Gruyter, vol. 6(2), pages 219-245, September.
    2. Jesko Schulte & Henrik Ny, 2018. "Electric Road Systems: Strategic Stepping Stone on the Way towards Sustainable Freight Transport?," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    3. Feldman Allan & Singh Ram, 2021. "Equilibria Under Negligence Liability: How the Standard Claims Fall Apart," Review of Law & Economics, De Gruyter, vol. 17(1), pages 1-33, March.
    4. Ram Singh, 2019. "Kaushik Basu: The republic of beliefs: A new approach to law and economics," Indian Economic Review, Springer, vol. 54(2), pages 371-380, December.
    5. Kundu, Rajendra P. & Kaur, Harshil, 2022. "Efficient simple liability assignment rules: A complete characterization," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 22-31.
    6. Lando, Henrik & Schweizer, Urs, 2021. "Causation and the incentives of multiple injurers," International Review of Law and Economics, Elsevier, vol. 68(C).
    7. FRANCESCO PARISI & Ram Singh, 2009. "Efficiency Of Equilibria Under Comparative Causation," Working papers 179, Centre for Development Economics, Delhi School of Economics.
    8. Samuel Ferey & Pierre Dehez, 2016. "Multiple Causation, Apportionment, and the Shapley Value," The Journal of Legal Studies, University of Chicago Press, vol. 45(1), pages 143-171.
    9. Allan M. Feldman & Ram Singh, 2009. "Comparative Vigilance," American Law and Economics Review, Oxford University Press, vol. 11(1), pages 134-161.
    10. Allan M Feldman & Ram Singh, 2008. "Comparative Vigilance: a Simple Guide," Working Papers 2008-11, Brown University, Department of Economics.

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    More about this item

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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