Safety and the Allocation of Costs in Large Accidents

Langlais, Éric

doi:10.2139/ssrn.1688897

Cited by 5 publications

(5 citation statements)

References 66 publications

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“…Nell and Richter (2003) address the case of dispersed harm under CARA utilities. Langlais (2010) investigates optimal risk allocation for perfectly correlated harms under RDEU. In Franzoni (2016), I investigate the relative desirability of strict liability and negligence when harms are correlated.…”

Section: Literature Reviewmentioning

confidence: 99%

Liability Law under Scientific Uncertainty

Franzoni

2017

American Law and Economics Review

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This paper investigates the implications of uncertainty aversion on optimal liability law. Of special interest is the case in which the causal link between conduct and harm is not known with certainty, as is frequently the case with toxic torts. Under negligence, uncertainty aversion calls for a higher standard of care if, and only if, the safest prevention measures are also the most reliable ones (i.e., they reduce the uncertainty perceived by the victim). Strict liability dominates negligence when the injurer has lower degrees of uncertainty aversion than the victim and can formulate more precise estimates of the probability of harm. When harm is dispersed on a very large number of victims, however, negligence dominates independently of their degree of uncertainty aversion.

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Section: Literature Reviewmentioning

confidence: 99%

Liability Law under Scientific Uncertainty

Franzoni

2017

American Law and Economics Review

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“…En présence d un risque agrégé, le niveau de prévention optimal est certes indépendant de la distribution initiale des risques individuels (et des coûts de l accident) 9 ; ceci est un résultat maintenant bien connu (cf Arrow [1964], Borch [1962] : Principe de Mutualité]). En revanche, ce niveau de prévention optimal n est pas indépendant du risque agrégé ; on peut formellement montrer [Langlais [2010]) qu il est décroissant (respectivement croissant, ou indépendant) dans la richesse sociale W dès lors que l aversion au risque de la société est décroissante (respectivement croissante, ou constante) dans la richesse sociale.…”

Section: Dans La Mesure Oùunclassified

“…9 Pour des risques idiosyncratiques, parfaitement assurables, la prévention optimale ne dépend que des caractéristiques de la technologie de prévention, et est indépendante de la distribution initiale comme finale des risques (cf la controverse Arlen [1992], Shavell [1982Shavell [ ,1987, Miceli et Segerson [1995]). les conditions de Borch et les contraintes de ressources dans chaque état (Langlais [2010]) que :…”

Section: La Responsabilite Civileunclassified

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Responsabilité civile et contrôle des activités représentant des risques mal connus

Langlais¹

2011

Revue Économique

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This note focuses on the design of prevention programmes and the role of tort law regarding the control of risky activities, associated with unknown or imperfectly known risks, such as innovation or (long term) environmental damages. Together with the existence of perception bias on the side of citizens, these risks are specific in that they are not insurable.Cet article s'intéresse aux mesures de prévention et au rôle de la responsabilité civile en matière de contrôle des activités associées à des risques imparfaitement connus ou inconnus, du type risque d'innovation ou dommages accidentels (à long terme) à l'environnement. L'une des spécificités de ces risques, outre la présence de biais de perception chez le citoyen, est qu'ils sont non assurables

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“…They prove that negligence is approximately efficient when the number of victims goes to infinity, if care is constrained above. Langlais (2010) investigates optimal risk allocation for perfectly correlated harms under RDEU.…”

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confidence: 99%

Optimal Liability Design Under Risk and Ambiguity

Franzoni

2015

SSRN Journal

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Safety and the Allocation of Costs in Large Accidents

Cited by 5 publications

References 66 publications

Liability Law under Scientific Uncertainty

Liability Law under Scientific Uncertainty

Responsabilité civile et contrôle des activités représentant des risques mal connus

Optimal Liability Design Under Risk and Ambiguity

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