Law and Economics Commons^™

The Failure Of Decoupling Liability And Other Mistakes In Tort Law, Enrico Baffi

enrico baffi

It's a common opinion among law and and economics scholars that with a regime of strict liability or a regime of negligence rule one party (but just one party) adopts an efficient level of activity. It's also a common idea the with a regime of strict liability and a tax on the victim equal to expected damage both parties take an efficent level of activity. We expalin in this paper why this opinions are wrong. The basic fact is that it is not considered by these opinions that, in order to have an efficient level of activity, it's necessary a …