Comparative Causation -- A Re-examination

Abstract

Negligence-based liability has been justified on the grounds of its efficiency properties. However, this approach towards liability assignment has been criticized in several recent writings. In a series of articles, causation-based apportionment of liability has been recommended, as an alternative basis for liability assignment. In an interesting paper, Parisi and Fon (2004) have studied various properties of the causation-based liability. In this paper, I review some of their propositions. The main aim of the paper, however, is to investigate the implications of the ‘alternative’ specification of liability. The paper shows that a combination of negligence-based and causation-based liability makes the diligence strategies dominant choice for the agents.liability rules, negligence-based liability, causation-based liability, comparative causation, economic efficiency