TY  - JOUR
PY  - 2008//
TI  - The joint use of regulation and strict liability with multidimensional care and uncertain conviction
JO  - International review of law and economics
A1  - Bhole, Bharat
A1  - Wagner, Jeffrey
SP  - 123
EP  - 132
VL  - 28
IS  - 2
N2  - The purpose of this paper is to explore the joint use of regulation and strict liability when firms can take care in both observable and unobservable dimensions and when the firm's conviction for damages is uncertain. Much of the literature concerning joint use regards management of the judgment-proof problem; the take-home result of our paper is that if the harming party can take both observable and unobservable care, then joint use can improve welfare even in the absence of judgment-proofness. This is true even when penalty multipliers are allowed, provided social welfare is negatively related to the firm's expected liability costs. In fact, use of penalty multipliers further strengthens the case for joint use.<p /> 
LA  - 
SN  - 0144-8188
UR  - http://dx.doi.org/10.1016/j.irle.2008.02.008
ID  - ref1
ER  -