This paper examines the influence of litigation costs on deterrence under strict liability and under negligence. By deterrence, I refer to the effect of the threat of liability on the care exercised by potential injurers. More precisely, this paper takes litigation costs as given and examines the social desirability of the levels of care exercised under negligence and under strict liability.
The Influence of Litigation Costs on Deterrence Under Strict Liability and Under Negligence,
International Review of Law and Economics
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