Abstract:
We study how due-care standards can be conditioned on the technology adopted by the parties. We demonstrate that standards should be biased up or downwards, depending on the impact of the new technology on expected harm. Strict liability should be applied if new technologies that are able to reduce expected harm are available to the injurer; negligence should be selected if they are available to the victim. Finally, the negligence standard should be primarily based on safety (outcome) rather than precautionary expenditures (effort), so as to allow the benefits of innovation to be appropriated by the party bearing its cost.
Dari-Mattiacci, Giuseppe and Franzoni, Luigi A., Innovative Negligence Rules (February 20, 2013). Amsterdam Law School Research Paper No. 2013-14; Amsterdam Center for Law & Economics Working Paper No. 2013-04.
First posted 2013-03-02 18:13:22
Leave a Reply