Economic Analysis of Law and Public Choice (Part 7)

27 de julio de 1995   | Vistas: 253 |  

About this video

In this lecture, Dr. Michael Krauss uses the example of a car accident to compare strict liability and the negligence rule.  In this case, he also takes into consideration the pedestrian's behavior, whether he walks or runs, and concludes that a negligence rule with contributory defense ensures the social optimum.  Then, he analyzes the example of an accident resulting from an exploding product.  By using game theory, Dr. Krauss explains that strict liability (consumer protection rights) and no liability produce the same inefficient, careless outcome. Under the negligence rule, however, both parties have incentives to take care.



Credits

Economic Analysis of Law and Public Choice (Part 7)
Dr. Michael Krauss

Universidad Francisco Marroquín
Guatemala, July 27, 1995

New Media - UFM production.  Guatemala, January 2009
Conversion and digital editing: Mynor de León; index and synopsis: Christiaan Ketelaar; content revisers: Daphne Ortiz, Jennifer Keller; publication: Mario Pivaral / Carlos Petz


IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín