Multiple Causes and Stacked Inferences

J. Shahar Dillbary

Journal of Institutional and Theoretical Economics (JITE), 2020, vol. 176, issue 1, 54-72

Abstract: When an accident is a mystery - when it is not clear what happened - courts often rely on stacked inferences. Such inferences are subject to much debate and are even prohibited by some jurisdictions. This article reveals that the doctrine of res ipsa loquitur ("the thing speaks for itself") is a form of stacked inferences and that despite its affiliation, it has been widely accepted. The article further shows that application of res ipsa loquitur in cases involving multiple actors can adversely affect precaution and activity levels. It concludes with a call for a careful application of res ipsa loquitur in cases involving multiple actors.

Keywords: multiple actors; stacked inferences; actual causation; false positives; deterrence; collusion; indemnity; game theory (search for similar items in EconPapers)
JEL-codes: C72 D60 D62 D63 D70 I10 J17 K13 K41 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1628/jite-2020-0009

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