We welcome your feedback. Please
email your suggestions and ideas to us.
AUTHOR:
Tim Friehe
TITLE:
Sequential Torts and Bilateral Harm
SUGGESTED CITATION:
Tim Friehe
(2007)
"Sequential Torts and Bilateral Harm",
German Working Papers in Law and Economics:
Vol. 2007:
Article 9.
http://www.bepress.com/gwp/default/vol2007/iss2/art9
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 paper analyzes care incentives of individuals in a bilateral-harm setting if care choices are sequential. We find that the efficient outcome is not guaranteed under any liability rule considered, irrespective of whether information is perfect or imperfect. Furthermore, it is no longer possible to generally rank liability rules according to their induced social costs. These findings are in strong contrast to the sequential-torts setting in which harm is unilateral.