Abstract

This article studies the optimal scope of negligence, considering which of the parties’ precautionary measures should be included in the determination of negligence and which instead should be omitted. The analysis shows that the optimal scope of negligence balances the gains derived from improved accident prevention with the administrative costs of the system. This approach also provides insights concerning not only the notions of care and activity level and their respective boundaries, but also the choice between strict liability and negligence.

Submitted: September 12, 2004 · Accepted: November 15, 2004 · Published: January 5, 2006

Recommended Citation

Dari-Mattiacci, Giuseppe (2005) "On the Optimal Scope of Negligence," Review of Law & Economics: Vol. 1 : Iss. 3, Article 2.
Available at: http://www.bepress.com/rle/vol1/iss3/art2