Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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Category: Economic Theory
Law and Economics I
Monday 26th August 2002, 14:30 - 16:00, Room: 2.1
Session Chair(s): Daniela Fabbri, Institut d''Analisi Economica (IAE-CSIC), SPAIN

Presenter(s): Fluet, Claude

Co-Author(s): Demougin, Dominique

Keyword(s): Burden of proof, Negligence, Standard of proof, Tort rules

JEL(s): D82, K40

Abstract:

We analyze the incentives properties of the standard of proof for a finding of negligence when courts have imperfect information about injurers' level of care. We show that the 'preponderance of evidence' or 'more likely than not' standard used in common law provides maximal incentives to exercise due care. This extends to situations where unequally informed parties must be led to disclose relevant evidence in an adversarial context and where courts do not know how well informed the parties are. Abstracting from the cost of producing evidence, the optimal assignment of the burden of proof also follows from the 'more likely than not' standard.


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Paper Reference Number: 1673

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Econometric Society
57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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