Errors and the Functioning of Tort Liability

25 Pages Posted: 17 Sep 2003

See all articles by Giuseppe Dari‐Mattiacci

Giuseppe Dari‐Mattiacci

University of Amsterdam; Tinbergen Institute; European Corporate Governance Institute (ECGI)

Abstract

The correct functioning of liability may be plagued by error in determining damages and in setting due care. This paper revises the literature on the topic and makes a distinction between those situations in which these two types of errors occur irrespective of each other and those in which they occur jointly. Three liability rules are considered: strict liability, the standard version of simple negligence without causation rule and the Grady-Kahan model of simple negligence with causation rule. It is shown that these liability rules perform differently only if the two types of errors occur separately. If they occur jointly, all liability rules yield the same equilibrium level of precaution.

Keywords: tort, negligence, strict liability, causation

JEL Classification: K13

Suggested Citation

Dari-Mattiacci, Giuseppe, Errors and the Functioning of Tort Liability. George Mason University Law & Economics, Research Paper Series No. 3-40, Supreme Court Economic Review, Vol. 13, No. , 2005, Available at SSRN: https://ssrn.com/abstract=442041 or http://dx.doi.org/10.2139/ssrn.442041

Giuseppe Dari-Mattiacci (Contact Author)

University of Amsterdam ( email )

Postbus 15654
1001 ND
Amsterdam, Noord-Holland 1001 ND
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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