IDEAS home Printed from https://ideas.repec.org/p/ulp/sbbeta/2016-35.html
   My bibliography  Save this paper

Multiple tortfeasors in high risk industries: how to share liability?

Author

Listed:
  • Julien Jacob
  • Bruno Lovat

Abstract

We develop a model in which two firms contribute to a risk of accident, each firm being financially unable to compensate for the entire damage. One firm directly operates the risky activity (and can make an effort in care to reduce the probability of an accident occurring), while the other firm provides an input technology whose quality has an impact on the likelihood an of accident occurring. We define a second-best rule of apportionment of liability between these two firms, and we show that this optimal sharing rule is sensitive to the market relationship on the technological market; thus calling for a collaboration between agencies in charge of risk regulation and those in charge of competition issues.

Suggested Citation

  • Julien Jacob & Bruno Lovat, 2016. "Multiple tortfeasors in high risk industries: how to share liability?," Working Papers of BETA 2016-35, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2016-35
    as

    Download full text from publisher

    File URL: http://beta.u-strasbg.fr/WP/2016/2016-35.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    multiple tortfeasors; sharing liability; insolvency; innovation; technical diffusion; market power.;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2016-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bestrfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.