Law Commons^™

Discontinuities, Causation, And Grady's Uncertainty Theorem, Stephen G. Marks

Faculty Scholarship

In a series of articles, Mark Grady considers the problem of discontinuity under a tort negligence regime. The discontinuity can be described as follows. A potential injurer who adopts the optimal level of precaution is completely shielded from liability under the negligence system even though accidents occur. A very small decrease in the level of precaution below the optimal level suddenly exposes the potential injurer to liability for those accidents. This discontinuity makes the expected cost of under-investment in precaution greater than the expected cost of overinvestment. In a world where there is uncertainty about the optimal level of precaution …