Liability Rules and Evolutionay Dynamics
We consider the convergence properties of behavior under a comparative negligence rule (CN) and under a rule of negligence with contributory negligence (NCN), assuming bilateral care with three care levels. Using an evolutionary model, we show that CN reduces the proportion of the population using low care more rapidly than does NCN. However NCN increases the proportion of the population using high (efficient) care more rapidly than does CN. As a result, the mean care level increases more rapidly and the mean social cost falls more rapidly under CN than under NCN.
|Date of creation:||10 Dec 2003|
|Note:||Type of Document - pdf; prepared on win98; pages: 32. Published in Journal of Institutional and Theoretical Economics, 157 (4) Dec 2001|
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