The Filtering Effect of Sharing Rules
Sharing rules have a filtering effect on violations: they prevent the most harmful violations and let the least harmful ones occur. We show the conditions under which the filtering effect improves social welfare and argue that this may explain why, in most areas of the law, sharing rules are, in general, preferred to rules that place the burden entirely on one party. Our analysis applies to loss sharing in tort liability, the allocation of police investigation efforts, contract remedies for nonverifiable breaches such as those that may occur in marriage and employment contracts, and the distribution of shares in partnerships.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter A. Diamond & James A. Mirrlees, 1975.
"On the Assignment of Liability: The Uniform Case,"
Bell Journal of Economics,
The RAND Corporation, vol. 6(2), pages 487-516, Autumn.
- Rea, Samuel Jr., 1987. "The economics of comparative negligence," International Review of Law and Economics, Elsevier, vol. 7(2), pages 149-162, December.
- Kornhauser, Lewis A & Revesz, Richard L, 1990. "Apportioning Damages among Potentially Insolvent Actors," The Journal of Legal Studies, University of Chicago Press, vol. 19(2), pages 617-651, June.
- Shavell, Steven, 1985.
"Uncertainty over Causation and the Determination of Civil Liability,"
Journal of Law and Economics,
University of Chicago Press, vol. 28(3), pages 587-609, October.
- Steven Shavell, 1983. "Uncertainty Over Causation and the Determination of Civil Liability," NBER Working Papers 1219, National Bureau of Economic Research, Inc.
- Edlin, Aaron S., 1994.
"Efficient standards of due care: Should courts find more parties negligent under comparative negligence?,"
International Review of Law and Economics,
Elsevier, vol. 14(1), pages 21-34, March.
- Aaron S. Edlin., 1993. "Efficient Standards of Due Care: Should Courts Find More Parties Negligent Under Comparative Negligence?," Economics Working Papers 93-218, University of California at Berkeley.
- Posner, Richard A, 1980.
"A Theory of Primitive Society, with Special Reference to Law,"
Journal of Law and Economics,
University of Chicago Press, vol. 23(1), pages 1-53, April.
- Richard A. Posner, 1979. "A Theory of Primitive Society with Special Reference to Law," University of Chicago - George G. Stigler Center for Study of Economy and State 7, Chicago - Center for Study of Economy and State.
- P. A. Diamond, 1973.
"Single Activity Accidents,"
113, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jerry Green, 1976. "On the Optimal Structure of Liability Laws," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 553-574, Autumn.
- Sloan, Frank A & Reilly, Bridget A & Schenzler, Christoph, 1995. "Effects of Tort Liability and Insurance on Heavy Drinking and Drinking and Driving," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 49-77, April.
- Lando, Henrik & Shavell, Steven, 2004. "The advantage of focusing law enforcement effort," International Review of Law and Economics, Elsevier, vol. 24(2), pages 209-218, June.
- 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.
- Chung, T.Y., 1992.
"Efficiency of Comparative Negligence: A Game Theoretic Analysis,"
UWO Department of Economics Working Papers
9215, University of Western Ontario, Department of Economics.
- Chung, Tai-Yeong, 1993. "Efficiency of Comparative Negligence: A Game Theoretic Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 22(2), pages 395-404, June.
- 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.
- Emons, Winand, 1990. "Efficient liability rules for an economy with non-identical individuals," Journal of Public Economics, Elsevier, vol. 42(1), pages 89-104, June.
- 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.
- Winand Emons & Joel Sobel, 1991.
"On the Effectiveness of Liability Rules when Agents are not Identical,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 375-390.
- Emons,Winand & Sobel,Joel, 1988. "On the effectiveness of liability rules when agents are not identical," Discussion Paper Serie A 212, University of Bonn, Germany.
- Steven Shavell, 2003.
"Economic Analysis of Accident Law,"
NBER Working Papers
9483, National Bureau of Economic Research, Inc.
- 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.
- Orr, Daniel, 1991. "The Superiority of Comparative Negligence: Another Vote," The Journal of Legal Studies, University of Chicago Press, vol. 20(1), pages 119-129, January.
- Parisi, Francesco & Dari-Mattiacci, Giuseppe, 2004.
"The rise and fall of communal liability in ancient law,"
International Review of Law and Economics,
Elsevier, vol. 24(4), pages 489-505, December.
- F. Parisi & Guiseppe Dari Mattiaci, 2003. "The Rise and Fall of Communal Liability in Ancient Law," Working Papers 03-12, Utrecht School of Economics.
- De Geest, Gerrit & Siegers, Jacques & Vandenberghe, Ann-Sophie, 2001. "The expectation measure, labor contracts, and the incentive to work hard," International Review of Law and Economics, Elsevier, vol. 21(1), pages 1-21, March.
- Peter A. Diamond, 1974. "Accident Law and Resource Allocation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 366-405, Autumn.
When requesting a correction, please mention this item's handle: RePEc:ucp:jlstud:v:34:y:2005:p:207-237. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.