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German Working Papers in Law and Economics
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Volume 2007

AUTHOR:
Tim Friehe

TITLE:
On Avoidance Activities After Accidents

SUGGESTED CITATION:
Tim Friehe (2007) "On Avoidance Activities After Accidents", German Working Papers in Law and Economics: Vol. 2007: Article 7.
http://www.bepress.com/gwp/default/vol2007/iss2/art7


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ABSTRACT:

This paper introduces avoidance activities into the accident setting. We discuss implications for the distinction between strict liability and negligence, the desirability of different negligence conceptions, and the optimality of care standards. Importantly, our analysis shows that punitive damages, i.e., damages above the harm incurred, can be welfare-reducing if injurers can choose avoidance, and that uncertainty concerning the due care standard can be welfare-improving.




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