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Law and Economics

SelectedWorks

Satish K. Jain

Publication Year

Articles 1 - 4 of 4

Full-Text Articles in Social and Behavioral Sciences

Uncertainty Regarding Interpretation Of The `Negligence Rule' And Its Implications For The Efficiency Of Outcomes, Satish K. Jain Jan 2011

Uncertainty Regarding Interpretation Of The `Negligence Rule' And Its Implications For The Efficiency Of Outcomes, Satish K. Jain

Satish K. Jain

There are two ways that the negligence rule is interpreted. Under one interpretation a negligent injurer is liable for the entire harm to the victim; and under the other interpretation a negligent injurer is liable only for that part of the harm which can be ascribed to his negligence. Both these versions are efficient. However, if there is uncertainty regarding whether the court will be employing the full liability version or the incremental liability version for determining the liability of a negligent injurer, notwithstanding the fact that both the versions are efficient, inefficiency is possible. In the paper necessary and ...


The Structure Of Efficient Liability Rules, Satish K. Jain Jan 2011

The Structure Of Efficient Liability Rules, Satish K. Jain

Satish K. Jain

The purpose of this paper is two-fold. One, to obtain a complete characterization of efficient liability rules within the framework of a model which is essentially the standard tort model with only some minor differences; but with a liability rule notion more general than the standard one. It is shown in the paper that the subclass of efficient liability rules is characterized by the conjunction of two conditions, namely, the condition of negligence liability and the requirement of non-reward for over-nonnegligence. Negligence liability requires that if one party is exactly nonnegligent and the other party is negligent then the negligent ...


The Coasean Analysis Of Harmful Interactions: Some Conceptual Difficulties, Satish K. Jain Jan 2010

The Coasean Analysis Of Harmful Interactions: Some Conceptual Difficulties, Satish K. Jain

Satish K. Jain

This paper is concerned with two distinct issues flowing from Coase's analysis of harmful interactions and of how courts deal with them. The first issue relates to the domain of validity of the Coase Theorem. It is argued in the paper that if non-pecuniary considerations are brought into the analysis then it can no longer be claimed that the outcome will be efficient regardless of liability assignments. In other words, it is contended in the paper that the validity of the Coase Theorem is crucially dependent on neglect of non-pecuniary considerations from the analysis. From this it follows that ...


On The Efficiency Of Negligence Rule, Satish K. Jain Jan 2009

On The Efficiency Of Negligence Rule, Satish K. Jain

Satish K. Jain

In the law and economics literature there are three different versions of negligence rule which have been discussed. These three versions are: (i) Injurer is liable for the entire loss if negligent, and not liable if nonnegligent. Injurer is negligent if his care level is below the due care level, otherwise nonnegligent. (ii) Injurer is liable for the incremental loss if negligent, and not liable if nonnegligent. Injurer is negligent if his care level is below the due care level, otherwise nonnegligent. (iii) Injurer is liable for the incremental loss if negligent, and not liable if nonnegligent. Injurer is negligent ...