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Liability, Risk Perceptions, and Precautions at Bars

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  • Sloan, Frank A
  • Stout, Emily M
  • Liang, Lan
  • Whetten-Goldstein, Kathryn

Abstract

Are state laws, regulatory practices, and allocation of public resources for enforcement reflected in perceptions by bar owners/managers that they will be cited or sued if they fail to exercise care? Among policies, which ones have the greatest impact on risk perceptions and, in turn, on such behaviors? We used data on laws, law enforcement, and regulations in the same areas as the bars to determine risk perceptions of bar owners/managers of threats of being sued or cited if they were to serve minors or obviously intoxicated adults. We found that many of the laws and regulations related systematically to risk perceptions of bar owners/managers. This was particularly true of tort. Precautionary measures were more likely to be taken by owners/managers when the risk was perceived to be high. Copyright 2000 by the University of Chicago.

Suggested Citation

  • Sloan, Frank A & Stout, Emily M & Liang, Lan & Whetten-Goldstein, Kathryn, 2000. "Liability, Risk Perceptions, and Precautions at Bars," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 473-501, October.
    • Handle: RePEc:ucp:jlawec:v:43:y:2000:i:2:p:473-501
    DOI: 10.1086/467463
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    References listed on IDEAS

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    Cited by:

    1. Yiqun Chen & Frank Sloan, 2014. "Subjective Beliefs, Deterrence, and the Propensity to Drive While Intoxicated," NBER Working Papers 20680, National Bureau of Economic Research, Inc.

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