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Tort Liability and Unawareness

Author

Listed:
  • Surajeet Chakravarty

    (Department of Economics, University of Exeter)

  • David Kelsey

    (Department of Economics, University of Exeter)

  • Joshua C. Teitelbaum

    (Georgetown University)

Abstract

Unawareness is a form of bounded rationality where a person fails to conceive all feasible acts or consequences or to perceive as feasible all conceivable act-consequence links. We study the implications of unawareness for tort law, where relevant examples include the discovery of a new product or technology (new act), of a new disease or injury (new consequence), or that a product can cause an injury (new link). We argue that negligence has an important advantage over strict liability in a world with unawareness–negligence, through the stipulation of due care standards, spreads awareness about the updated probability of harm.

Suggested Citation

  • Surajeet Chakravarty & David Kelsey & Joshua C. Teitelbaum, 2018. "Tort Liability and Unawareness," Discussion Papers 1801, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:1801
    as

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    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP1801.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    negligence; strict liability; tort law; unawareness.;
    All these keywords.

    JEL classification:

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

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