Chapter 4. Economic Theory of Liability Rules

  1. Donald A. Wittman
  1. John P. Brown

Published Online: 17 DEC 2007

DOI: 10.1002/9780470752135.ch4

Economic Analysis of the Law: Selected Readings

Economic Analysis of the Law: Selected Readings

How to Cite

Brown, J. P. (2004) Economic Theory of Liability Rules, in Economic Analysis of the Law: Selected Readings (ed D. A. Wittman), Blackwell Publishing Ltd, Oxford, UK. doi: 10.1002/9780470752135.ch4

Publication History

  1. Published Online: 17 DEC 2007
  2. Published Print: 1 JAN 2004

ISBN Information

Print ISBN: 9780631231578

Online ISBN: 9780470752135

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Keywords:

  • economic theory;
  • liability rules;
  • transaction costs;
  • production;
  • contract law

Summary

This chapter contains section titled:

  • Scope: Economics Applied to Tort Law rather than Contract Law

  • The Economics of Precautions

  • Centralized Control over Precautions

  • Decentralization to Two Parties with Liability Rules

  • Liability Rules

  • Changing the Amount of the Activity

  • Other Comments