On the Optimal Scope of Negligence

Review of Law and Economics, Vol. 1, No. 3, December 2005

George Mason Law & Economics Research Paper No. 04-39

31 Pages Posted: 17 Sep 2004

See all articles by Giuseppe Dari‐Mattiacci

Giuseppe Dari‐Mattiacci

University of Amsterdam; Tinbergen Institute; European Corporate Governance Institute (ECGI)

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 reduction of accident costs with the administrative costs of the system. This approach also provides insights on the notions of care and activity level and their boundaries, and on the choice between strict liability and negligence.

Keywords: activity level, care, precaution, negligence, evolution of liability.

JEL Classification: K00, K13

Suggested Citation

Dari-Mattiacci, Giuseppe, On the Optimal Scope of Negligence. Review of Law and Economics, Vol. 1, No. 3, December 2005, George Mason Law & Economics Research Paper No. 04-39, Available at SSRN: https://ssrn.com/abstract=592164 or http://dx.doi.org/10.2139/ssrn.592164

Giuseppe Dari-Mattiacci (Contact Author)

University of Amsterdam ( email )

Postbus 15654
1001 ND
Amsterdam, Noord-Holland 1001 ND
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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