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Hockey pucks are dangerous when they fly outside the arena, and plexiglass is often used to protect fans from injury. An injury inflicted by a
Hockey pucks are dangerous when they fly outside the arena, and plexiglass is often used to protect fans from injury. An injury inflicted by a hockey puck causes harm (A) equivalent to $100,000. The height of the plexiglass and the corresponding costs and risks of injuries are described in this table: 2. What is the expected harm, that is, p(x)A, of the accidents? When precaution level is high: When precaution level is medium: When precaution level is low: When precaution level is zero: 3. What level of precaution minimizes social cost: high, medium, low or zero? 4. Under strict liability and with perfect damages, what level of precaution will be employed by the arena
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