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Intuitions about Penalties and Compensation in the Context of Tort Law

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  • Baron, Jonathan
  • Ritov, Ilana

Abstract

Students, retired judges, economists, and others made judgments of appropriate penalties and compensation for hypothetical injuries. In some scenarios, compensation was paid by the government and penalties were paid to the government, so the two could differ. Penalties were generally uninfluenced by their deterrent effect on future behavior. Penalties were greater when they were paid directly to the victim than when they were paid to the government. Compensation was affected by whether injuries were caused by people or by nature, or by acts vs. omissions. These effects are not justified according to consequentialist views of penalties and compensation. We suggest that people are overgeneralizing reasonable rules and that such overgeneralization may be involved in perverse effects of tort law. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Baron, Jonathan & Ritov, Ilana, 1993. "Intuitions about Penalties and Compensation in the Context of Tort Law," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 17-33, August.
    • Handle: RePEc:kap:jrisku:v:7:y:1993:i:1:p:17-33
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    Citations

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    Cited by:

    1. Paul Rozin & Claude Fischler & Christy Shields-Argeles, 2009. "Additivity dominance: Additives are more potent and more often lexicalized across languages than are ``subtractives''," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 4(6), pages 475-478, October.
    2. repec:cup:judgdm:v:4:y:2009:i:6:p:475-478 is not listed on IDEAS
    3. Daniel P. Kessler & Daniel L. Rubinfeld, 2004. "Empirical Study of the Civil Justice System," NBER Working Papers 10825, National Bureau of Economic Research, Inc.
    4. Nicolas Baumard, 2011. "Punishment is not a group adaptation," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 10(1), pages 1-26, June.
    5. Tess Wilkinson-Ryan & Jonathan Baron, 2008. "The Effect of Conflicting Moral and Legal Rules on Bargaining Behavior: The Case of No-Fault Divorce," The Journal of Legal Studies, University of Chicago Press, vol. 37(1), pages 315-338, January.
    6. Ritov, Ilana & Baron, Jonathan, 1999. "Protected Values and Omission Bias," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(2), pages 79-94, August.
    7. Bulte, Erwin H. & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2004. "Do causes of environmental problems affect Hicksian equivalent surplus? Evidence from the field," Economics Letters, Elsevier, vol. 85(2), pages 157-162, November.
    8. Kimmo Eriksson & Per A. Andersson & Pontus Strimling, 2017. "When is it appropriate to reprimand a norm violation? The roles of anger, behavioral consequences, violation severity, and social distance," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(4), pages 396-407, July.
    9. Adrianna C Jenkins & David Dodell-Feder & Rebecca Saxe & Joshua Knobe, 2014. "The Neural Bases of Directed and Spontaneous Mental State Attributions to Group Agents," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-11, August.
    10. Svensson, Mikael & Vredin Johansson, Maria, 2007. "Willingness to Pay for Private and Public Safety: Why the Difference?," Working Papers 2007:2, Örebro University, School of Business.
    11. Glazer, Amihai & Niskanen, Esko, 2005. "When users of congested roads may view tolls as unjust," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 31, pages 6-14.
    12. Baron, Jonathan & Ritov, Ilana, 2004. "Omission bias, individual differences, and normality," Organizational Behavior and Human Decision Processes, Elsevier, vol. 94(2), pages 74-85, July.
    13. repec:feb:framed:0001 is not listed on IDEAS
    14. repec:cup:judgdm:v:12:y:2017:i:4:p:396-407 is not listed on IDEAS
    15. Kłusek, Michał, 2024. "How acceptable is optimal deterrence?," International Review of Law and Economics, Elsevier, vol. 78(C).
    16. Eyal Zamir & Ilana Ritov, 2010. "Revisiting the Debate over Attorneys' Contingent Fees: A Behavioral Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 39(1), pages 245-288, January.

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