Working Paper No. 03-56:
When Will Judgment Proof Injurers Take Too Much Precaution?

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Date Posted: 2003

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Abstract:

This article identifies the conditions under which insolvent injurers over-invest in precaution. We show that this may happen only when precaution reduces the probability of the accident. No such overprecaution occurs if precaution only reduces the magnitude of the harm.