On the Optimal Scope of Negligence

Review of Law and Economics, Vol. 1, No. 3, December 2005

George Mason Law & Economics Research Paper No. 04-39

31 Pages Posted: 17 Sep 2004  

Giuseppe Dari‐Mattiacci

Amsterdam Law School; Amsterdam Business School; Tinbergen Institute

Abstract

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.

Keywords: activity level, care, precaution, negligence, evolution of liability.

JEL Classification: K00, K13

Suggested Citation

Dari‐Mattiacci, Giuseppe, On the Optimal Scope of Negligence. Review of Law and Economics, Vol. 1, No. 3, December 2005; George Mason Law & Economics Research Paper No. 04-39. Available at SSRN: https://ssrn.com/abstract=592164 or http://dx.doi.org/10.2139/ssrn.592164

Amsterdam Business School ( email )

Roetersstraat 18
Amsterdam, 1018WB
Netherlands

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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