Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 19, No. 4, pp.439-466
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2006
Received 25 Jul 2005 Revised 03 Jan 2007

Evidentiary Uncertainty and Negligence Rules

Yoon-Ha Yoo
Professor, KDI School of Public Policy and Management, 207-43 Chongnyangni-2-dong, Dongdaemun-ku, Seoul 130-868, Korea, Tel: +82-2-3299-1013, Fax: +82-2-968-5072 yhy@kdischool.ac.kr

JEL Classfication: K13

Abstract

This paper analyzes the effects of evidentiary uncertainty on people's incentives to abide by rules in the context of negligence rules in tort law. It demonstrates that i) the comparative negligence rule is not necessarily superior to the simple or the contributory negligence rule, ii) an application of lenient standards of due care under the contributory negligence rule than in comparative negligence rule would not necessarily restore social efficiency, and iii) a partial reduction of legal uncertainty would not necessarily improve social efficiency. These results contrast previous theoretical literature.

Keywords:

Tort law, Negligence rule, Legal uncertainty

References

  • Bar-Gill, O., and Ben-Shahar, O. “The Uneasy Case for Comparative Negligence.” American Law and Economics Review 5 (Fall 2003): 433-69. [https://doi.org/10.1093/aler/ahg016]
  • Bulow, Z., Geanakoplos, Z., and Klemperer, P. “Multimarket Oligopoly: Strategic Substitutes and Complements.” Journal of Political Economy 93 (No. 3 1985): 488-511. [https://doi.org/10.1086/261312]
  • Calfee, J. E., and Craswell, R. “Some Effects of Uncertainty on Compliance with Legal Standards.” Virginia Law Review 70 (June 1984): 965-1004. [https://doi.org/10.2307/1072946]
  • Cooter, R. D., and Ulen, T. S. “An Economic Case for Comparative Negligence.” NYU Law Review 61 (December 1986): 1067-110.
  • Craswell, R., and Calfee, J. E. “Deterrence and Uncertain Legal Standards.” Journal of Law, Economics, and Organization 2 (No. 2 1986): 279-303.
  • Edlin, A. S. “Efficient Standards of Due Care: Should Courts Find More Parties Negligent under Comparative Negligence?” International Review of Law and Economics 14 (No. 1 1994): 21-34. [https://doi.org/10.1016/0144-8188(94)90033-7]
  • Fudenberg, D., and Tirole, Z. “The Fat Cat Effect, the Puppy Dog Ploy, and the Lean and Hungry Look.” American Economic Review, Papers and Proceedings 74 (No. 2 1984): 361-8.
  • Haddock, D., and Curran, C. “An Economic Theory of Comparative Negligence.” Journal of Legal Studies 16 (January 1985): 49-72. [https://doi.org/10.1086/467765]
  • Kahan, M. “Causation and Incentives to Take Care under the Negligence Rule.” Journal of Legal Studies 18 (June 1989): 427-47. [https://doi.org/10.1086/468154]
  • Shavell, S. Economic Analysis of Accident Law. NBER Working Paper 9483, February, 2003. [https://doi.org/10.3386/w9483]
  • Shavell, S. Economic Analysis of Accident Law. London, England: Harvard University Press, 1987. [https://doi.org/10.4159/9780674043510]
  • Yoo, Yoon-Ha. “Is Reducing Legal Uncertainty Always Desirable?” Korean Journal of Law and Economics 1 (No. 1 2004): 13-33.