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1) What is the efficient behavior of the driver? Why? 2) Define the standard of care as the efficient outcome (behavior). Would a rule of

1) What is the efficient behavior of the driver? Why?

2) Define the standard of care as the efficient outcome (behavior). Would a rule of strict liability lead to an efficient outcome on the part of the driver? Why or why not?

3) Define the standard of care as the efficient outcome (behavior). Would a rule of negligence lead an efficient outcome on the part of the driver? Why or why not?

Unilateral Care Model

Behavior of Driver

Benefit to Driver

Expected Accident Cost to Pedestrian

Drive rapidly

$500

$300

Drive moderately

$320

$170

Drive slowly

$150

$50


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