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Fault, Settlement, and Negligence Law

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  • Daniel Kessler

Abstract

State tort laws that govern the apportionment of damages from accidents often bar potential plaintiffs who played even a minor causal role in the accident from recovering damages from other culpable parties. However, anecdotal evidence suggests that judges and juries fail to enforce the letter of the law, which leads to a weaker relationship between fault in an accident and recovery for injuries than the laws would predict. Data from insurance settlements arising out of auto accidents are consistent with the anecdotal evidence. This indicates that the letter of the law may be less important in shaping individuals' behavior than scholars have supposed.

Suggested Citation

  • Daniel Kessler, 1995. "Fault, Settlement, and Negligence Law," RAND Journal of Economics, The RAND Corporation, vol. 26(2), pages 296-313, Summer.
  • Handle: RePEc:rje:randje:v:26:y:1995:i:summer:p:296-313
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    Cited by:

    1. Helen I. Doerpinghaus & Joan T. Schmit & Jason Jia-Hsing Yeh, 2008. "Age and Gender Effects on Auto Liability Insurance Payouts," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(3), pages 527-550.
    2. Spurr, Stephen J. & Howze, Sandra, 2001. "The effect of care quality on medical malpractice litigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(4), pages 491-513.
    3. Eric Helland & Jonathan Klick & Alexander Tabarrok, 2005. "Data Watch: Tort-uring the Data," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 207-220, Spring.

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