Limiting Limited Liability

12 Pages Posted: 29 Sep 2005  

Giuseppe Dari‐Mattiacci

Amsterdam Law School; Amsterdam Business School; Tinbergen Institute

Abstract

Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability cap can improve caretaking.

Keywords: insolvency, judgment proof, liability, bankruptcy, liability cap

JEL Classification: K13, K32, L59

Suggested Citation

Dari‐Mattiacci, Giuseppe, Limiting Limited Liability. Economics Bulletin, Vol. 11, No. 1, pp. 1-7, 2006; George Mason Law & Economics Research Paper No. 05-32; Amsterdam Center for Law & Economics Working Paper No. 2005-05. Available at SSRN: https://ssrn.com/abstract=814749

Amsterdam Business School ( email )

Roetersstraat 18
Amsterdam, 1018WB
Netherlands

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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