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Comparative Vigilance

Author

Listed:
  • Allan M. Feldman

    (Department of Economics, Brown University Providence, RI 02906 USA)

  • Ram Singh

    (Department of Economics, Delhi School of Economics, Delhi, India)

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. However, standard models of liability rules do not provide for vigilance-based sharing of liability. 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. It is commonly believed that discontinuous liability shares are necessary for efficiency. However 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. Moreover, our super-symmetric rule divides accident losses into two parts: one part creates incentives for efficiency; the other part provides equity.

Suggested Citation

  • Allan M. Feldman & Ram Singh, 2008. "Comparative Vigilance," Working papers 173, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:173
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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. Kundu, Rajendra P. & Kaur, Harshil, 2022. "Efficient simple liability assignment rules: A complete characterization," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 22-31.
    4. FRANCESCO PARISI & Ram Singh, 2009. "Efficiency Of Equilibria Under Comparative Causation," Working papers 179, Centre for Development Economics, Delhi School of Economics.
    5. 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.
    6. 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.
    7. 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.
    8. Lando, Henrik & Schweizer, Urs, 2021. "Causation and the incentives of multiple injurers," International Review of Law and Economics, Elsevier, vol. 68(C).
    9. Allan M. Feldman & Ram Singh, 2009. "Comparative Vigilance," American Law and Economics Review, American Law and Economics Association, 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.

    More about this item

    Keywords

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    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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