Innovative Negligence Rules

32 Pages Posted: 2 Mar 2013 Last revised: 5 May 2013

Date Written: February 20, 2013

Abstract

We study how due-care standards can be conditioned on the technology adopted by the parties. We demonstrate that standards should be biased up or downwards, depending on the impact of the new technology on expected harm. Strict liability should be applied if new technologies that are able to reduce expected harm are available to the injurer; negligence should be selected if they are available to the victim. Finally, the negligence standard should be primarily based on safety (outcome) rather than precautionary expenditures (effort), so as to allow the benefits of innovation to be appropriated by the party bearing its cost.

Keywords: technology, activity level, care, accident, liability

JEL Classification: K13, K32

Suggested Citation

Dari-Mattiacci, Giuseppe and Franzoni, Luigi Alberto, Innovative Negligence Rules (February 20, 2013). Amsterdam Law School Research Paper No. 2013-14; Amsterdam Center for Law & Economics Working Paper No. 2013-04. Available at SSRN: https://ssrn.com/abstract=2226316 or http://dx.doi.org/10.2139/ssrn.2226316

Giuseppe Dari-Mattiacci (Contact Author)

Columbia University - Law School ( email )

435 West 116th Street
New York, NY 10025
United States

HOME PAGE: http://www.law.columbia.edu/faculty/giuseppe-dari-mattiacci

Luigi Alberto Franzoni

University of Bologna ( email )

P.zza Scaravilli 2
Bologna, 40124
Italy
0512098488 (Phone)
+39-051-221968 (Fax)

HOME PAGE: https://www.unibo.it/sitoweb/luigi.franzoni/en

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