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Victim Interdependence in the Accident Setting

Author

Listed:
  • Tim Friehe

    (Eberhard Karls University Tübingen)

Abstract

This paper considers the case that potential victims affect each other by taking care. Analyzing standard liability rules, we show that strict liability with a defense of contributory negligence is in the best position to induce the efficient outcome, i.e., this liability rule ensures efficiency if victims affect each other negatively - care by one victim increases the accident exposure of other victims - and makes the attainment likely if victims affect each other positively - if care by one victim decreases the accident exposure of other victims. In contrast, the other standard liability rules fail to induce first-best care.

Suggested Citation

  • Tim Friehe, "undated". "Victim Interdependence in the Accident Setting," German Working Papers in Law and Economics 2008-1-1217, Berkeley Electronic Press.
    • Handle: RePEc:bep:dewple:2008-1-1217
    Note: oai:bepress:
    as

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    File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1217&context=gwp
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    Cited by:

    1. Friehe, Tim & Langlais, Eric, 2015. "On the political economy of public safety investments," International Review of Law and Economics, Elsevier, vol. 41(C), pages 7-16.

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