AUTOMOBILE ACCIDENTS, TORT LAW, EXTERNALITIES, AND INSURANCE: AN ECONOMIST'S CRITIQUE

WHILE MUCH EFFORT HAS BEEN DEVOTED TO ASCERTAINING HOW THE COST OF PROVIDING HIGHWAY FACILITIES SHOULD BE APPORTIONED AMONG VARIOUS CLASSES OF TRAFFIC, LESS ATTENTION HAS BEEN GIVEN BY ECONOMISTS THAN BY LAWYERS TO THE QUESTION OF HOW THE COSTS OF ACCIDENTS SHOULD BE BORNE. THIS PAPER ANALYZES THIS QUESTION FROM THE ECONOMIST'S VIEWPOINT, CONSIDERING THE INCENTIVES AFFECTING THE MARGINAL DECISIONS OF MOTORISTS AND THE CONSEQUENCES FOR THE ALLOCATION OF RESOURCES. THIS ANALYSIS ALSO COVERS THE CURRENT PRACTICES IN TORT INSURANCE PREMIUM AND DAMAGE PAYMENTS. SUGGESTIONS ARE MADE REGARDING WAYS OF MOTIVATING BETTER SPECIFIC PERFORMANCE AND OF REMOVING OBSTACLES TO FAIR SETTLEMENTS, SUCH AS LIABILITY LIMITS AND CONTINGENT FEES. MODIFICATIONS OF THE SYSTEM THROUGH PUBLIC AGENCIES AND/OR THE PRIVATE INSURANCE SYSTEM ARE SUGGESTED TO REDUCE THE PRESENTLY EXCESSIVE OVERHEAD COSTS. /AUTHOR/

  • Supplemental Notes:
    • Vol 33, pp 464-487
  • Corporate Authors:

    LAW AND CONTEMPORARY PROBLEMS

    DURHAM, N.C.
    ,    
  • Authors:
    • Vickrey, W
  • Publication Date: 1968

Subject/Index Terms

Filing Info

  • Accession Number: 00201882
  • Record Type: Publication
  • Source Agency: Traffic Systems Reviews & Abstracts
  • Files: TRIS
  • Created Date: Sep 14 1970 12:00AM