Tort Reform and Innovation

Tort Reform and Accidental Deaths

Theory suggests that tort reform could have either of two impacts on accidents. First, reforms could increase accidents as tortfeasors internalize less of the costs of externalities, and thus, have less incentive to reduce the risk of accidents. Second, tort reforms could decrease accidents as lower expected liability costs result in lower prices, enabling consumers to buy more risk-reducing pr...

Tort Reform, Kiwi-Style

Serious Tort Law Reform

Tort law is a form of collective intervention into social and economic affairs that carries with it substantial costs, both public and private. These costs include higher prices for goods and services, higher taxes, and the socially undesirable consequences that tort law has on people's behavior such as the failure of companies to develop and introduce products the public wants, the wasteful an...

Innovation , tort law , and competition

In this paper, we examine the link between innovative activity on the part of firms, the competitive pressure to introduce innovations and optimal damages awards. While innovative activity brings forth valuable new products for consumers, competitive pressure in the ensuing innovation race induces firms to launch innovations too early, thereby raising the likelihood of severe product risks abov...

Tort Reform : Alternative Models Alan

The primary means for patients in the United States to gain redress for grievances against hospitals and physicians is the tort system. Largely through rulings from state and federal courts, we rely on the tort system to incentivize individuals and firms to take appropriate care of those in their charge, compensate those who are harmed by their actions, manage risk, and punish those who fail to...