New study finds negligence may be superior to strict liability in accidents
Standard accident models don't consider uncertainty in accident risk. This study introduces a new model that accounts for ambiguity in risk perception. It shows that neither strict liability nor negligence is always the best approach when there is ambiguity. The level of care taken by the injurer changes with their optimism or pessimism, and negligence might be a better option in ambiguous situations. The study also suggests a new liability rule that considers ambiguity for more efficient outcomes.