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Liability, Risk Perceptions, and Precautions at Bars

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  • Sloan, Frank A
  • Stout, Emily M
  • Liang, Lan
  • Whetten-Goldstein, Kathryn

Abstract

Are state laws, regulatory practices, and allocation of public resources for enforcement reflected in perceptions by bar owners/managers that they will be cited or sued if they fail to exercise care? Among policies, which ones have the greatest impact on risk perceptions and, in turn, on such behaviors? We used data on laws, law enforcement, and regulations in the same areas as the bars to determine risk perceptions of bar owners/managers of threats of being sued or cited if they were to serve minors or obviously intoxicated adults. We found that many of the laws and regulations related systematically to risk perceptions of bar owners/managers. This was particularly true of tort. Precautionary measures were more likely to be taken by owners/managers when the risk was perceived to be high. Copyright 2000 by the University of Chicago.

Suggested Citation

  • Sloan, Frank A & Stout, Emily M & Liang, Lan & Whetten-Goldstein, Kathryn, 2000. "Liability, Risk Perceptions, and Precautions at Bars," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 473-501, October.
  • Handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:473-501
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    File URL: http://dx.doi.org/10.1086/467463
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    References listed on IDEAS

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    1. Daniel P. Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," NBER Working Papers 5466, National Bureau of Economic Research, Inc.
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    3. 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.
    4. Low, Stuart & Smith, Janet Kiholm, 1995. "Decisions to Retain Attorneys and File Lawsuits: An Examination of the Comparative Negligence Rule in Accident Law," The Journal of Legal Studies, University of Chicago Press, vol. 24(2), pages 535-557, June.
    5. Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 353-390.
    6. repec:aph:ajpbhl:1987:77:8:952-954_3 is not listed on IDEAS
    7. Chaloupka, Frank J & Saffer, Henry & Grossman, Michael, 1993. "Alcohol-Control Policies and Motor-Vehicle Fatalities," The Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 161-186, January.
    8. Michelle J. White, 1989. "An Empirical Test of the Comparative and Contributory Negligence Rules in Accident Law," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 308-330, Autumn.
    9. Sloan, Frank A. & Reilly, Bridget A. & Schenzler, Christoph M., 1994. "Tort liability versus other approaches for deterring careless driving," International Review of Law and Economics, Elsevier, vol. 14(1), pages 53-71, March.
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    Cited by:

    1. Yiqun Chen & Frank Sloan, 2014. "Subjective Beliefs, Deterrence, and the Propensity to Drive While Intoxicated," NBER Working Papers 20680, National Bureau of Economic Research, Inc.

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