TY - JOUR
T1 - The uneasy case of multiple injurers' liability
AU - Guttel, Ehud
AU - Leshem, Shmuel
N1 - Publisher Copyright:
© 2014 by Walter de Gruyter Berlin/Boston.
PY - 2014/7/1
Y1 - 2014/7/1
N2 - When harm is caused by multiple injurers, damages are allocated among the responsible injurers in proportion to their relative responsibility for harm. This Article shows that a proportional allocation of liability between strictly-liable injurers distorts incentives to take precautions. The effects of this distortion depend on the nature of the injurers' precautions. If precautions are complements, injurers compete for lower liability shares, which results in excessive care-taking. If precautions are substitutes, injurers are afflicted by moral hazard, which gives rise to insufficient care-taking. By illuminating injurers' strategic incentives, this Article highlights a tension between equity and efficiency under a proportional allocation of liability.
AB - When harm is caused by multiple injurers, damages are allocated among the responsible injurers in proportion to their relative responsibility for harm. This Article shows that a proportional allocation of liability between strictly-liable injurers distorts incentives to take precautions. The effects of this distortion depend on the nature of the injurers' precautions. If precautions are complements, injurers compete for lower liability shares, which results in excessive care-taking. If precautions are substitutes, injurers are afflicted by moral hazard, which gives rise to insufficient care-taking. By illuminating injurers' strategic incentives, this Article highlights a tension between equity and efficiency under a proportional allocation of liability.
UR - http://www.scopus.com/inward/record.url?scp=84907812406&partnerID=8YFLogxK
U2 - 10.1515/til-2014-0202
DO - 10.1515/til-2014-0202
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AN - SCOPUS:84907812406
SN - 1565-3404
VL - 15
SP - 261
EP - 292
JO - Theoretical Inquiries in Law
JF - Theoretical Inquiries in Law
IS - 2
ER -