TABLE 6.2 Efficiency of Incentives Created by Liability Rules* yes indicates efficient incentives; no, inefficient incentives; and zero, no incentive. Legal Rule Precaution Activity Level
TABLE 6.2 Efficiency of Incentives Created by Liability Rules* yes indicates efficient incentives; no, inefficient incentives; and zero, no incentive. Legal Rule Precaution Activity Level Victim Injurer Victim Injurer No liability yes zero yes no Strict liability zero yes no yes Simple negligence yes yes yes no Negligence + contributory negligence yes yes YES no Strict liability + contributory negligence yes yes no yes Comparative negligence yes yes yes no *assumes perfect compensation and legal standards equal to efficient precaution
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance