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- W2271033615 abstract "Standard economic analysis of tort law demonstrates that a negligence rule features continuity/discontinuity of the cost function at the point of optimal care, as causation is or is not taken into account. This analysis has focused exclusively on care models. This paper analyzes the impact of the causation requirement in more realistic models of care and activity. It shows that the continuity/discontinuity feature of the negligence rule depends on the type of the precautionary measure and its relationship with the activity level. If care and expected harm are linear in activity levels, then the negligence rule features continuity. However, if the precautionary measure is perfectly durable (its costs are independent of the activity level), then discontinuity is present. The implications of the continuity/discontinuity feature of the negligence rule under conditions of imperfection are examined. It is shown, for example, that if due care is set at incorrect levels (a reasonable person rather than an individualized standard), then the causation requirement is not necessarily socially desirable; and that it is socially detrimental under conditions of systematically misestimated harm." @default.
- W2271033615 created "2016-06-24" @default.
- W2271033615 creator A5084779904 @default.
- W2271033615 date "2007-01-01" @default.
- W2271033615 modified "2023-09-23" @default.
- W2271033615 title "Causation, (Dis)Continuity, and Incentives to Choose Levels of Care and Activity under the Negligence Rule" @default.
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- W2271033615 doi "https://doi.org/10.2139/ssrn.968612" @default.
- W2271033615 hasPublicationYear "2007" @default.
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