Injurers versus Victims: (A)Symmetric Reactions to Symmetric Risks
24 Pages Posted: 4 Mar 2018 Last revised: 12 Apr 2021
Date Written: November 8, 2019
Tort models assume symmetry in the behavior of injurers and victims when faced by a threat of liability and a risk of harm without compensation, respectively. While most of the results generated in tort theory rely on this assumption, it is based on an economic prediction that has never been empirically validated. Using a novel experimental design, we study the behavior of injurers and victims when facing symmetric accident risks. Experimental results provide qualified support for the symmetric behavior hypothesis. However, our findings reveal statistically different reactions of injurers and victims in accident situations over time.
Keywords: precautions, tort theory, laboratory experiment
JEL Classification: K13, C91
Suggested Citation: Suggested Citation