ABSTRACT
The efficiency criterion (the highest level of care at the lowest accident cost) governs the comparison of performance between strict liability and negligence. This view stems from the initial standard accident model which under ideal conditions, ensures equivalence among liability regimes and assumes their potential substitutability. We develop a more general accident model which retains the neutral to risk assumption by assuming divergent views among the parties about the scale of the damages. Efficiency then no longer appears a sufficient relevant criterion to compare liability regimes. Consequently, each belongs to a specific field: Ultra-hazardous activities in the case of strict liability and the remaining areas of negligence.
Mondello, Gerard, A General Accident Model In a Risky Environment.
Leave a Reply