A Legal and Economic Analysis of the Allocation of Liability for Unknown Risks in the Context of Business Environment

Abstract

The allocation of liability for unknown risks is a difficult problem, and the focus of law and economics research in tort law in a business environment perspective is to provide incentives for different actors to better determine their level of attention and activity and achieve the desired allocation of risk, with the goal of reducing institutional costs, and through what regulatory measures the liability for such unknown risks allocation acts as an incentive, and this paper will focus on these issues.