On the Optimal Scope of Negligence
University of Amsterdam - Amsterdam Center for Law & Economics (ACLE); Tinbergen Institute
Review of Law and Economics, Vol. 1, No. 3, December 2005
George Mason Law & Economics Research Paper No. 04-39
This article studies the optimal scope of negligence, considering which of the parties' precautionary measures should be included in the determination of negligence and which instead should be omitted. The analysis shows that the optimal scope of negligence balances the reduction of accident costs with the administrative costs of the system. This approach also provides insights on the notions of care and activity level and their boundaries, and on the choice between strict liability and negligence.
Number of Pages in PDF File: 31
Keywords: activity level, care, precaution, negligence, evolution of liability.
JEL Classification: K00, K13
Date posted: September 17, 2004