AN ECONOMIC ANALYSIS OF A HYBRID LIABILITY RULE

Abstract

This article considers a legal setting with a tort liability rule that includes both a care‐based component (such as negligence) and a non–care‐based component (such as no liability). Children trespassers are sometimes protected by a doctrine known as attractive nuisance. Attractive nuisance acts as a hybrid liability rule in its application—it applies the negligence rule to accidents involving some types of children, and the no‐liability rule to accidents involving other types of children. A standard economic model of torts is applied to a trespass setting, and the potential efficiency of a hybrid liability rule is examined.