Car accidents in the age of robots

Alessandro De Chiara, Idoia Elizalde, Ester Manna and Adrian Segura-Moreiras

International Review of Law and Economics, 2021, vol. 68, issue C

Abstract: In this paper, we compare liability rules in a world where human-driven and fully-autonomous cars coexist. We develop a model where a manufacturer can invest to improve the safety of autonomous cars. Human drivers may decide to purchase a fully-autonomous car to save precaution costs to avoid road accidents and shift liability to the car manufacturer. As compared to the negligence rule, a strict liability regime on both human drivers and car manufacturers is proved to be a superior policy. In particular, strict liability leads to more efficient R&D investments to enhance the benefits of the technology and favors the adoption of fully-autonomous cars. We also recommend that users of fully-autonomous cars make a technology-dependent payment to a third-party if there is an accident to discipline their activity levels.

Keywords: Autonomous vehicles; Investment problem; Liability rules; Torts (search for similar items in EconPapers)
JEL-codes: K2 L1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:68:y:2021:i:c:s0144818821000466

DOI: 10.1016/j.irle.2021.106022

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