TY - JOUR
T1 - Liability rules can rationalize greater victim vulnerability
AU - Friehe, Tim
AU - Tabbach, Avraham
N1 - Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2021
Y1 - 2021
N2 - This paper shows that an imperfect strict liability rule can induce victims to increase the losses they incur in the event of an accident, and that similar incentives exist under the negligence rule. Using a simple model in which victims can influence their harm distribution, we identify two potential reasons why victims may benefit from greater ‘vulnerability’, namely strategic effects on own future and others’ behaviour.
AB - This paper shows that an imperfect strict liability rule can induce victims to increase the losses they incur in the event of an accident, and that similar incentives exist under the negligence rule. Using a simple model in which victims can influence their harm distribution, we identify two potential reasons why victims may benefit from greater ‘vulnerability’, namely strategic effects on own future and others’ behaviour.
KW - Activity
KW - Care
KW - Liability
UR - http://www.scopus.com/inward/record.url?scp=85097104993&partnerID=8YFLogxK
U2 - 10.1080/13504851.2020.1854440
DO - 10.1080/13504851.2020.1854440
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AN - SCOPUS:85097104993
SN - 1350-4851
VL - 28
SP - 1825
EP - 1829
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 21
ER -