Article ID Journal Published Year Pages File Type
5067663 European Economic Review 2006 14 Pages PDF
Abstract

This paper investigates the incentive properties of the standard of proof for a finding of negligence when evidence about injurers' behavior is imperfect. We show that a “more-likely-than-not” decision rule provides maximal incentives for potential tort-feasors to exert care. An injurer is then held liable whenever inadequate care appears more likely than due care, and not liable otherwise. Our analysis provides a deterrence rationale for the exclusionary rules of evidence found in common law and the preponderance of evidence standard of proof.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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