AN ANALYSIS OF THE JUDGMENT PROOF PROBLEM UNDER DIFFERENT TORT MODELS

Or search all bepress web pages:

We welcome your feedback. Please email your suggestions and ideas to us.

German Working Papers in Law and Economics

AUTHOR:
Giuseppe Dari Mattiacci and Gerrit De Geest

TITLE:
AN ANALYSIS OF THE JUDGMENT PROOF PROBLEM UNDER DIFFERENT TORT MODELS

SUGGESTED CITATION:
Giuseppe Dari Mattiacci and Gerrit De Geest (2002) "AN ANALYSIS OF THE JUDGMENT PROOF PROBLEM UNDER DIFFERENT TORT MODELS", German Working Papers in Law and Economics: Vol. 2002: Article 24.
http://www.bepress.com/gwp/default/vol2002/iss1/art24

View the article (407 K)

Notify a colleague about this paper

Get Acrobat Reader

Printing Tip: Select the option to 'print as image' in the Acrobat print dialog to ensure the article prints as it appears on screen.
Learn more...

ABSTRACT:
This article analyzes the effects of insolvency on the injurer’s level of precaution. It shows that the outcome depends on whether the injurer can reduce the probability of the accident, the magnitude of the harm or both. Different legal solutions to the problem are examined: punitive (overcompensatory) damages, average compensation of the harm, undercompensatory damages (which can be seen as an implicit harm subsidy), and negligence (which can be seen as an implicit harm subsidy that is paid only when the injurer is non-negligent). It is shown that the optimal solution depends on the type of model.