Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2001 erstellt
Description:
In a world with risk-neutral agents, liability rules will only induce efficient behavior if these rules impose the full (marginal) costs of an action on the parties. However, institutional restrictions or bilateral activity choices can prevent the full internalization of costs. A mechanism is proposed which guarantees an efficient outcome: monetary fines which are not related to the occurrence of an accident. Such a mechanism requires individuals to violate the standard of care in order to trigger fine payments. Hence, efficiency needs an excessive standard