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

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?