A growing body of literature suggests that courts and juries are inclined toward division of liability between two strictly non-negligent or â€œvigilantâ€ 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 â€œsuper-symmetric rule,â€ 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. [Working Paper No. 173]
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.:
- Allan M Feldman & Ram Singh, 2008.
2008-9, Brown University, Department of Economics.
- 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.
- 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.
- Miceli, Thomas J., 1997. "Economics of the Law: Torts, Contracts, Property, Litigation," OUP Catalogue, Oxford University Press, number 9780195103908, May.
- 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.
- Ram Singh, 2006.
"On the Existence and Efficiency of Equilibria under Liability Rules,"
150, Centre for Development Economics, Delhi School of Economics.
- Ram Singh, 2006. "On the Existence and Efficiency of Equilibria Under Liability Rules," NBER Working Papers 12625, National Bureau of Economic Research, Inc.
- Ram Singh, 2008. "On The Existence and Efficiency of Equilibria Under Liability Rules," Working Papers id:1716, eSocialSciences.
- P. A. Diamond, 1973.
"Single Activity Accidents,"
113, Massachusetts Institute of Technology (MIT), Department of Economics.
- 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.
- Rea, Samuel Jr., 1987. "The economics of comparative negligence," International Review of Law and Economics, Elsevier, vol. 7(2), pages 149-162, December.
- Kaplow, Louis, 1995. "A Model of the Optimal Complexity of Legal Rules," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(1), pages 150-63, April.
- 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.
- Francesco Parisi, 2004. "Comparative Causation," American Law and Economics Review, Oxford University Press, vol. 6(2), pages 345-368.
- Miceli, Thomas J., 1996. "Cause in fact, proximate cause, and the hand rule: Extending Grady's positive economic theory of negligence," International Review of Law and Economics, Elsevier, vol. 16(4), pages 473-482, December.
- 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 427-47, June.
- Marks, Stephen, 1994. "Discontinuities, Causation, and Grady's Uncertainty Theorem," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 287-301, January.
- Jeonghyun Kim, 2004. "A Complete Characterization of Efficient Liability Rules: Comment," Journal of Economics, Springer, vol. 81(1), pages 61-75, 01.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2682. 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: (Padma Prakash)
If references are entirely missing, you can add them using this form.