Limiting Limited Liability
- Author(s):
- Giuseppe Dari-Mattiacci
- Posted:
- 2005
- Law & Economics #:
- 05-32
- Availability:
- Full text (most recent) on SSRN
ABSTRACT:
Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability cap can improve caretaking.