Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322629 
Year of Publication: 
2003
Series/Report no.: 
Discussion Papers Series No. 03-16
Publisher: 
Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute, Utrecht
Abstract: 
This study shows that the effects of judgment proofness on precaution depend on whether the injurer can reduce the probability of the accident, the magnitude of the harm, or both. Different legal solutions to the problem are examined: punitive damages, average compensation, undercompensation, accurate compensation and negligence. We find that when the injurer can only reduce the probability of the accident, negligence with average compensation is the best solution, but negligence with perfectly compensatory damages is the desirable solution if the injurer can only or also affect the magnitude of the harm.
Subjects: 
insolvency
judgment proof
liability
bankruptcy
Document Type: 
Working Paper

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