In Table, no liability and strict liability have the opposite incentive effects upon activity levels.Why? Efficiency of
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Efficiency of Incentives Created by Liability Rules* yes indicates efficient incentives; no, inefficient incentives; and zero, no incentive. Legal Rule Precaution Activity Level Victim njurer Victim Injurer No liability Strict liability Simple negligence Negligence contributory negligence Strict liability + contributory negligence Comparative negligence yes zero yes yes yes yes zero yes yes es es yes yes no es yes no yes no yes no no yes no assumes perfect compensation and legal standards equal to efficient precaution
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