1. In the bilateral care model, explain which liability rule generates the optimal level of precaution from both the injurer and the victim. 2. What is the basic problem with the other rules that prevent them from generating the same result? 3. How does the introduction of contributory negligence change this, and why?

1. In the bilateral care model, explain which liability rule generates the optimal level of precaution from both the injurer and the victim. 2. What is the basic problem with the other rules that prevent them from generating the same result? 3. How does the introduction of contributory negligence change this, and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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