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Learning-by-doing in torts: Liability and information about accident technology

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  • Baumann, Florian
  • Friehe, Tim

Abstract

In the economic analysis of liability law, information about accident risk and how it can be influenced by precautions is commonly taken for granted. However, a profound understanding of the relationship between care and accident risk often requires learning-by-doing. In a two-period model, we examine the implications for the optimal level of care and behavior under strict liability and negligence, showing that liability law may not induce efficient incentives.

Suggested Citation

  • Baumann, Florian & Friehe, Tim, 2016. "Learning-by-doing in torts: Liability and information about accident technology," Economics Letters, Elsevier, vol. 138(C), pages 1-4.
    • Handle: RePEc:eee:ecolet:v:138:y:2016:i:c:p:1-4
    DOI: 10.1016/j.econlet.2015.10.041
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    Cited by:

    1. Friehe, Tim & Schulte, Elisabeth, 2017. "Uncertain product risk, information acquisition, and product liability," Economics Letters, Elsevier, vol. 159(C), pages 92-95.
    2. Céline Bonnet & Jan Philip Schain, 2020. "An Empirical Analysis Of Mergers: Efficiency Gains And Impact On Consumer Prices," Journal of Competition Law and Economics, Oxford University Press, vol. 16(1), pages 1-35.
    3. Charreire, Maxime & Langlais, Eric, 2021. "Should environment be a concern for competition policy when firms face environmental liability?," International Review of Law and Economics, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Liability rules; Care incentives; Accident technology;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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