Excessive damages increase expected liability under a negligence rule, which results in excess precaution. Explain the mistake

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“Excessive damages increase expected liability under a negligence rule, which results in excess precaution.” Explain the mistake in this proposition.

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Law and economics

ISBN: 978-0132540650

6th Edition

Authors: Robert cooter, Thomas ulen

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Question Posted: Aug 11, 2012 03:23 AM

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Excessive damages increase expected liability under a negligence rule, which results in excess precaution. Explain the mistake

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Excessive damages awarded by the court will increase the e...View the full answer

Law and economics

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