On judgment proofness in the case of bilateral harm

• Autores: Tim Friehe
• Localización: European journal of law and economics, ISSN 0929-1261, Vol. 26, Nº 2, 2008, págs. 175-185
• Idioma: inglés
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• Resumen

  • This paper defies the widely held belief concerning the unambiguous superiority of negligence in settings of judgment proofness. We analyze a set-up with bilateral harm, bilateral care, and potential judgment proofness by one party to the accident. We establish that strict liability with a defense of contributory negligence can perform better than simple negligence and negligence with a defense of contributory negligence. It is shown that the former liability rule can better establish a discontinuity in individual costs conducive to inducing efficient care than the other rules.