Overconfidence is an overestimation of one’s own ability that is often associated with an underestimation of risks and inflated estimation of one’s future success. Debiasing overconfidence through tort law is not an easy task. If people tend to believe that risks are less likely to materialize for themselves than for others, they inadequately react to legal threats and incentives. For example, overconfidence may lead to the assumption of excessive risks, undermining the deterrent effect of liability rules, even if parties are provided accurate information about statistical facts.
Beyond Liability: Debiasing Through Tort Law / F. PARISI; B. LUPPI. - In: QUEEN'S LAW JOURNAL. - ISSN 0316-778X. - STAMPA. - 47:(2009), pp. 47-66.
Beyond Liability: Debiasing Through Tort Law
PARISI, FRANCESCO;
2009
Abstract
Overconfidence is an overestimation of one’s own ability that is often associated with an underestimation of risks and inflated estimation of one’s future success. Debiasing overconfidence through tort law is not an easy task. If people tend to believe that risks are less likely to materialize for themselves than for others, they inadequately react to legal threats and incentives. For example, overconfidence may lead to the assumption of excessive risks, undermining the deterrent effect of liability rules, even if parties are provided accurate information about statistical facts.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
