Strict Liability vs Negligence: Is Economic Efficiency a Relevant Comparison Criterion?

Gerard Mondello

No 2020-18, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: The efficiency criterion (the highest care level at the lowest accident cost) indisputably governs the comparison of performance between strict liability and negligence. This view stems from the standard accident model development in the 70's and the 80's that ensures under ideal conditions, the equivalence between regimes and assume their potential substitutability. We develop a more general accident model (under risk universe) with divergent views among the parties about the damage. It follows that efficiency is no longer a relevant criterion. liability regimes belong to specific fields: Ultra-hazardous activities for strict liability and the remaining areas of negligence.

Keywords: Tort law; Unilateral accident model; Risk; Safety; Strict liability; Negligence; Ultra-hazardous activities (search for similar items in EconPapers)
JEL-codes: D62 K13 K23 K32 Q52 Q58 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2020-05
New Economics Papers: this item is included in nep-law
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: STRICT LIABILITY VS NEGLIGENCE: IS ECONOMIC EFFICIENCY A RELEVANT COMPARISON CRITERION? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2020-18

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