On Judgment Proofness in the Case of Bilateral Harm

Friehe, Tim

On Judgment Proofness in the Case of Bilateral Harm

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Date

2008

Publication type

Journal article

Published in

European Journal of Law and Economics ; 26 (2008), 2. - pp. 175-185

Abstract

This paper defies the widely held belief concerning the unambiguous superiority of negligence in settings of judgment proofness. We analyze a set-up with bilateral harm, bilateral care, and potential judgment proofness by one party to the accident. We establish that strict liability with a defense of contributory negligence can perform better than simple negligence and negligence with a defense of contributory negligence. It is shown that the former liability rule can better establish a discontinuity in individual costs conducive to inducing efficient care than the other rules.

Subject (DDC)

330 Economics

Keywords

Care incentives,Judgment proofness,Bilateral harm,Bilateral care,Tort law

Cite This

ISO 690

FRIEHE, Tim, 2008. On Judgment Proofness in the Case of Bilateral Harm. In: European Journal of Law and Economics. 26(2), pp. 175-185. Available under: doi: 10.1007/s10657-008-9057-7

BibTex

@article{Friehe2008Judgm-1900,
  year={2008},
  doi={10.1007/s10657-008-9057-7},
  title={On Judgment Proofness in the Case of Bilateral Harm},
  number={2},
  volume={26},
  journal={European Journal of Law and Economics},
  pages={175--185},
  author={Friehe, Tim}
}

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