When Will Judgment Proof Injurers Take Too Much Precaution?
- Author(s):
- Giuseppe Dari-Mattiacci, Gerrit DeGeest
- Posted:
- 2003
- Law & Economics #:
- 03-56
- Availability:
- Full text (most recent) on SSRN
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.