Publikation: On the Superiority of Damage Averaging in the Case of Strict Liability
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Datum
2009
Autor:innen
Baumann, Florian
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International Review of Law & Economics. 2009, 29(2), pp. 138-142. Available under: doi: 10.1016/j.irle.2008.10.001
Zusammenfassung
The literature argues that if injurers cannot anticipate the precise level of harm, courts might use expected harm as a magnitude of compensation instead of actual harm without distorting care incentives. This paper shows that the use of expected harm is in fact preferable if victims choose the value of the object placed at risk. If the court were to insist on compensating actual harm, this would result in victims choosing inefficient object values. In contrast, restricting compensation to expected harm yields the first-best outcome.
Zusammenfassung in einer weiteren Sprache
Fachgebiet (DDC)
330 Wirtschaft
Schlagwörter
Strict liability, Incentives, Unilateral care, Endogenous harm, Averaging
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BAUMANN, Florian, Tim FRIEHE, 2009. On the Superiority of Damage Averaging in the Case of Strict Liability. In: International Review of Law & Economics. 2009, 29(2), pp. 138-142. Available under: doi: 10.1016/j.irle.2008.10.001BibTex
@article{Baumann2009Super-1822,
year={2009},
doi={10.1016/j.irle.2008.10.001},
title={On the Superiority of Damage Averaging in the Case of Strict Liability},
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journal={International Review of Law & Economics},
pages={138--142},
author={Baumann, Florian and Friehe, Tim}
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