Question 17 If both potential injurers and potential victims are fully insured, which condition is necessary to produce an efficient level of precautionary effort by both parties? competition between insurers to drive insurance prices down to the expected cost of accidents plus administrative costs O a strict liability rule O punitive damages to discourage reckless behavior a comparative negligence rule to allocate the damages between the victim and the injurer
Question 17 If both potential injurers and potential victims are fully insured, which condition is necessary to produce an efficient level of precautionary effort by both parties? competition between insurers to drive insurance prices down to the expected cost of accidents plus administrative costs O a strict liability rule O punitive damages to discourage reckless behavior a comparative negligence rule to allocate the damages between the victim and the injurer
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Transcribed Image Text:Question 17
If both potential injurers and potential victims are fully insured, which condition is necessary to produce an efficient level of precautionary effort by both parties?
competition between insurers to drive insurance prices down to the expected cost of accidents plus administrative costs
O a strict liability rule
O punitive damages to discourage reckless behavior
O a comparative negligence rule to allocate the damages between the victim and the injurer
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