Comparative versus Contributory Negligence: A Comparison of the Litigation Expenditures
Posted: 16 Oct 2012
Date Written: October 15, 2012
The previous literature on comparative and contributory negligence points out that administrative costs are higher under comparative negligence because the courts must decide on the degree of negligence by both parties and not just whether the parties were negligent. In this article, I show that this finding is not necessarily correct. I use a rent seeking model to show that the litigation expenditures may be smaller under comparative negligence. The previous literature has focused on only one effect, while there may be three effects at play.
Keywords: contributory negligence, comparative negligence, rent seeking, litigation expenditures
JEL Classification: K13, K41
Suggested Citation: Suggested Citation