Working Paper No. 04-39:
On The Optimal Scope of Negligence

Author(s):

Giuseppe Dari-Mattiacci

Date Posted: 2004

Availability:
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Abstract:

This article studies the optimal scope of negligence, considering which of the parties' precautionary measures should be included in the determination of negligence and which instead should be omitted. The analysis shows that the optimal scope of negligence balances the reduction of accident costs with the administrative costs of the system. This approach also provides insights on the notions of care and activity level and their boundaries, and on the choice between strict liability and negligence.