Jump to ContentJump to Main Navigation
Dimensions of Economic Theory and PolicyEssays for Anjan Mukherji$
Users without a subscription are not able to see the full content.

Krishnendu Ghosh Dastidar, Hiranya Mukhopadhyay, and Uday Bhanu Sinha

Print publication date: 2011

Print ISBN-13: 9780198073970

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198073970.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 24 November 2020

Decomposition of Accident Loss and Efficiency of Negligence Rule

Decomposition of Accident Loss and Efficiency of Negligence Rule

Chapter:
(p.236) 14 Decomposition of Accident Loss and Efficiency of Negligence Rule
Source:
Dimensions of Economic Theory and Policy
Author(s):

Satish K. Jain

Rajendra P. Kundu

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198073970.003.0014

Negligence rule is a commonly used liability rule for apportioning accident loss between victim and injurer. Under the negligence rule, the entire accident loss is borne by the injurer if he is negligent and by the victim if the injurer is non-negligent. The injurer is negligent if his care level is less than the due care level, but not if his care level is more than the due care level. This chapter examines whether distributive considerations can be brought in without affecting the efficiency of the negligence rule. It shows that in providing correct incentives to the parties, part of accident loss can be apportioned between two parties regardless of their care levels. When providing correct incentives to the parties, what is crucial is the apportionment of the accident loss over and above the adjusted optimal loss.

Keywords:   accident loss, injurer, victim, negligence rule, distributive considerations, incentives, optimal loss

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .