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Innovative Negligence Rules

Author

Listed:
  • Giuseppe Dari-Mattiacci
  • Luigi Alberto Franzoni

Abstract

Often, injurers or victims (or both) can adopt a new technology that reduces the social costs of accidents. When adoption costs are not verifiable in court, optimal adoption decisions cannot be induced by means of an appropriate determination of negligence. Hence the parties might either over- or under-adopt. We study how due-care standards should be conditioned on the technology adopted by the parties in order to improve adoption decisions. We demonstrate that standards should be biased upwards or downwards, depending on whether the new technology reduces or increases expected harm.

Suggested Citation

  • Giuseppe Dari-Mattiacci & Luigi Alberto Franzoni, 2014. "Innovative Negligence Rules," American Law and Economics Review, American Law and Economics Association, vol. 16(2), pages 333-365.
    • Handle: RePEc:oup:amlawe:v:16:y:2014:i:2:p:333-365.
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    File URL: http://hdl.handle.net/10.1093/aler/aht021
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    Citations

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    Cited by:

    1. Julien Jacob, 2015. "Innovation in Risky Industries under Liability Law: The Case of Double-Impact Innovations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(3), pages 385-404, September.
    2. Miriam C. Buiten, 2024. "Product liability for defective AI," European Journal of Law and Economics, Springer, vol. 57(1), pages 239-273, April.
    3. Florian Baumann & Klaus Heine, 2013. "Innovation, Tort Law, and Competition," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(4), pages 703-719, December.
    4. De Chiara, Alessandro & Elizalde, Idoia & Manna, Ester & Segura-Moreiras, Adrian, 2021. "Car accidents in the age of robots," International Review of Law and Economics, Elsevier, vol. 68(C).
    5. Luigi Alberto Franzoni, 2019. "Legal Change in the Face of Risk-Averse Subjects: A Generalization of the Theory," American Law and Economics Review, American Law and Economics Association, vol. 21(2), pages 394-430.
    6. Jacob Julien, 2021. "The (Mixed) Effects of Minimum Asset Requirements When There is a Possibility of Technological Change," Review of Law & Economics, De Gruyter, vol. 17(1), pages 167-191, March.
    7. Marie Obidzinski & Yves Oytana, 2022. "Prediction, human decision and liability rules, CRED Working paper No 2022-06," Working Papers hal-04034871, HAL.

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