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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

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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

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