Viscusi, W. Kip --- "Empirical analysis of tort damages" [2013] ELECD 1230; in Arlen, H. Jennifer (ed), "Research Handbook on the Economics of Torts" (Edward Elgar Publishing, 2013) 460

Book Title: Research Handbook on the Economics of Torts

Editor(s): Arlen, H. Jennifer

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848441187

Section: Chapter 18

Section Title: Empirical analysis of tort damages

Author(s): Viscusi, W. Kip

Number of pages: 26

Abstract/Description:

The law and economics theory of damages for tort cases is much more abstract and less nuanced than the practice of setting the value of these awards. How awards are set and at what levels are both crucial determinants of the functioning of the tort liability system. Do tort damages in fact establish appropriate incentives for deterrence and provide the levels of insurance consistent with law and economics theory? Are there inadequacies in the levels of these damages that might warrant some kind of reform to the damages determination process? Have there been stark upward trends in amounts of damages that would suggest that the functioning of the tort system has changed in a perhaps unintended manner? This chapter reviews the different damages’ components and provides a general empirical review of their performance.