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Customary versus Technological. Advancement Tests

Author

Listed:
  • Bruno Deffains
  • Dominique Demougi

Abstract

In an environment where the optimal level of care is unknown, we ask under a state of the art defense which method is better able to induce parties to undertake optimal care. Assuming courts can see a noisy signal of research activities undertaken by a defendant and some of its competitors, we ask whether courts should use a biased or unbiased average to compare care. We find that the later is better.

Suggested Citation

  • Bruno Deffains & Dominique Demougi, 2006. "Customary versus Technological. Advancement Tests," Working Papers of BETA 2006-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  • Handle: RePEc:ulp:sbbeta:2006-12
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    File URL: http://www.beta-umr7522.fr/productions/publications/2006/2006-12.pdf
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    Keywords

    Tort law; standard of care; customary test; technological advancement test.;

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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