Tort Liability and Unawareness

Economics

Speaker:David Kelsey, University of Exeter
Date: Wednesday 9 May 2018
Time: 1:30pm
Location: Bateman Lecture Theatre

Further details

Unawareness is a form of bounded rationality in which a person fails to conceive all feasible acts or consequences or to perceive as feasible all conceivable act-consequence links. We study the implications of unawareness for tort law, where relevant examples include the discovery of a new product or technology (new act), of a new disease or injury (new consequence), or that a product can cause an injury (new link). We argue that negligence is superior to strict liability in a word with unawareness, because negligence, through the stipulation of due care standards, spreads awareness about the updated probability of harm.