Skip to main content
SpringerLink
Log in
Book cover

Encyclopedia of Law and Economics pp 1–9Cite as

Tort Damages

  • 151 Accesses

Definition

The amount of monetary compensation a tortfeasor has to pay to the plaintiff(s) in a tort case when he is found liable.

Introduction

Liability rules in tort law determine when a tortfeasor is liable. The rules of tort damages determine the amount the liable tortfeasor subsequently has to pay. Together these two bodies of law therefore determine in which situations the tortfeasor has to pay how many damages to the plaintiff(s). Therefore, the behavioral incentives provided by tort law depend on both sets of rules. In this entry, the most important insights from the economic analysis of tort damages are presented. The limited space does not allow a full discussion of all possible complications (see Visscher 2009for a more complete overview), but where relevant such complications are briefly indicated. It is also not possible to include a full discussion of the liability rules themselves, but in the remainder of this introduction, a very brief account of this topic is...

This is a preview of subscription content, log in via an institution.

References

  • Adams M (1989) Warum kein Ersatz von Nichtvermögensschäden? In: Ott C, Schäfer HB (eds) Allokationseffizienz in der Rechtsordnung. Springer, Berlin, pp 210–217

    Chapter  Google Scholar 

  • Arlen J (ed) (2013) Research handbook on the economics of Torts. Edward Elgar, Cheltenham

    Google Scholar 

  • Bishop W (1982) Economic loss in Tort. Oxford J Legal Stud 2:1–29

    Article  Google Scholar 

  • Cohen TH, Harbacek K (2011) Punitive damage awards in state courts, 2005. US Department of Justice Special Report March 2011

    Google Scholar 

  • Cooter RD (1989) Punitive damages for deterrence: when and how much? Ala Law Rev 40:1143–1196

    Google Scholar 

  • Cooter RD, Ulen TS (2012) Law and economics, 6th edn. Addison Wesley, Boston

    Google Scholar 

  • Croley SP, Hanson JD (1995) The nonpecuniary costs of accidents: pain and suffering damages in Tort law. Harv Law Rev 108:1785–1917

    Article  Google Scholar 

  • Dari-Mattiacci G, Schäfer HB (2007) The core of pure economic loss. Int Rev Law Econ 27:8–28

    Article  Google Scholar 

  • Friedman DD (2000) Law’s order. What economics has to do with law and why it matters. Princeton University Press, Princeton

    Google Scholar 

  • Geistfeld M (1995) Placing a price on pain and suffering: a method for helping juries determine Tort damages for nonmonetary injuries. Calif Law Rev 83:773–852

    Article  Google Scholar 

  • Gómez F, Ruiz JA (2004) The plural – and misleading – notion of economic loss in Tort: a law and economics perspective. Z Eur Priv 12:908–931

    Google Scholar 

  • Kaplow L, Shavell S (1996) Accuracy in the assessment of damages. J Law Econ 39:191–210

    Article  Google Scholar 

  • Karapanou V, Visscher LT (2010) Towards a better assessment of pain and suffering damages. J Eur Tort Law 1:48–74

    Article  Google Scholar 

  • Miller TR (2000) Valuing nonfatal quality of life losses with quality-adjusted life years: the health economist’s meow. J Forensic Econ 13:145–167

    Article  Google Scholar 

  • Polinsky AM (1997) Are punitive damages really insignificant, predictable and rational? A comment on Eisenberg et al. J Legal Stud 26:663–677

    Article  Google Scholar 

  • Polinsky AM, Shavell S (1994) Should liability be based on the harm to the victim or the gain to the injurer? J Law Econ Organ 10:427–437

    Google Scholar 

  • Polinsky AM, Shavell S (1998) Punitive damages: an economic analysis. Harv Law Rev 111:869–962

    Article  Google Scholar 

  • Polinsky AM, Shavell S (2014) Costly litigation and optimal damages. Int Rev Law Econ 37:86–89

    Article  Google Scholar 

  • Posner RA (2003) Economic analysis of law, 6th edn. Aspen Publishers, New York

    Google Scholar 

  • Posner EA, Sunstein CR (2005) Dollars and death. Univ Chic Law Rev 72:537–589

    Google Scholar 

  • Pryor ES (1993) The Tort law debate, efficiency, and the kingdom of ill: a critique of the insurance theory of compensation. Virg Law Rev 79:91–152

    Article  Google Scholar 

  • Rea S (1981) Lump sum versus periodic damage awards. J Legal Stud 10:131–154

    Article  Google Scholar 

  • Rizzo MJ (1982) The economic loss problem: a comment on bishop. Oxf J Legal Stud 2:197–206

    Article  Google Scholar 

  • Schäfer HB, Ott C (2005) Lehrbuch der ökonomischen Analyse des Zivilrechts, 4th edn. Springer, Berlin

    Google Scholar 

  • Shavell S (2004) Foundations of economic analysis of law. The Belknap Press of Harvard University Press, Cambridge, MA

    Google Scholar 

  • Sunstein CR (2004) Lives, life-years, and willingness to pay. Columbia Law Rev 104:205–252

    Article  Google Scholar 

  • Van Wijck P, Winters JK (2001) The principle of full compensation in Tort law. Eur J Law Econ 11:319–332

    Article  Google Scholar 

  • Vidmar N, Wolfe MW (2009) Punitive damages. Ann Rev Law Soc Sci 5:179–199

    Google Scholar 

  • Viscusi WK, Aldy JE (2003) The value of a statistical life: a critical review of market estimates throughout the world. J Risk Uncertain 27:5–76

    Article  Google Scholar 

  • Visscher LT (2009) Tort damages. In: Faure MG (ed) Tort law and economics, vol I, 2nd edn, Encyclopedia of law and economics. Edward Elgar, Cheltenham, pp 153–200

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Rotterdam Institute of Law and Economics (RILE), Erasmus School of Law, Erasmus University Rotterdam, 1738, 3000DR, Rotterdam, The Netherlands

    Louis Visscher

Authors
  1. Louis Visscher
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Louis Visscher .

Editor information

Editors and Affiliations

  1. Lehrst. Finanzwissenschaft/ Finanzsoziologie, University of Erfurt, Erfurt, Thüringen, Germany

    Jürgen Backhaus

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer Science+Business Media New York

About this entry

Cite this entry

Visscher, L. (2014). Tort Damages. In: Backhaus, J. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_543-1

Download citation

  • DOI: https://doi.org/10.1007/978-1-4614-7883-6_543-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, New York, NY

  • Online ISBN: 978-1-4614-7883-6

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Chapter history

  1. Latest

    Tort Damages
    Published:
    26 May 2021

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_543-2

  2. Original

    Tort Damages
    Published:
    01 October 2014

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_543-1

Search

Navigation