Limiting limited liability

Open Access
Authors
Publication date 2006
Journal Economics Bulletin
Volume | Issue number 11 | 1
Pages (from-to) 1-7
Organisations
  • Interfacultary Research - Amsterdam Center for Law & Economics (ACLE)
  • Faculty of Law (FdR) - Amsterdam Center for Law & Economics (ACLE)
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability cap can improve caretaking.
Document type Article
Language English
Published at http://www.accessecon.com/pubs/EB/2006/Volume11/EB-06K10001A.pdf
Downloads
346252.pdf (Final published version)
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