Abstract

http://ssrn.com/abstract=1555793
 
 

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Beyond Liability: Correcting Optimism Bias Through Tort Law


Barbara Luppi


Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics; University of St. Thomas School of Law

Francesco Parisi


University of Minnesota - Law School; University of Bologna

February 19, 2010

Queen's Law Journal, Vol. 35, No. 47, 2009
Minnesota Legal Studies Research Paper No. 10-10

Abstract:     
Due to their unrealistic optimism, people believe that risks are less likely to materialize for themselves than for others and hence inadequately react to legal threats and incentives such as tort liability. Optimism bias creates a distinctive problem in the design of tort rules, since it leads parties to assume excessive risks, in spite of the threat of liability, even when parties are provided accurate information about statistical facts. In this paper, we consider the opportunity to insulate the effects of optimism bias by exempting the parties from the liability due to optimism errors.

Number of Pages in PDF File: 24

Keywords: Unrealistic Optimism, Debiasing, Tort Remedies, Exemption of Liability

JEL Classification: K13, K43, D03, D81

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Date posted: February 19, 2010 ; Last revised: February 24, 2010

Suggested Citation

Luppi, Barbara and Parisi, Francesco, Beyond Liability: Correcting Optimism Bias Through Tort Law (February 19, 2010). Queen's Law Journal, Vol. 35, No. 47, 2009; Minnesota Legal Studies Research Paper No. 10-10. Available at SSRN: http://ssrn.com/abstract=1555793

Contact Information

Barbara Luppi
Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics ( email )
Viale Berengario 51
41100 Modena, Modena 41100
Italy
University of St. Thomas School of Law
MN
United States
Francesco Parisi (Contact Author)
University of Minnesota - Law School ( email )
229 19th Avenue South
Minneapolis, MN 55455
United States
University of Bologna ( email )
Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy
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