Title : Customary versus Technological. Advancement Tests
Author(s) : Bruno Deffains, Dominique Demougi
Abstract : In an environment where the optimal level of care is unknown, we ask under a state of the art defense which method is better able to induce parties to undertake optimal care. Assuming courts can see a noisy signal of research activities undertaken by a defendant and some of its competitors, we ask whether courts should use a biased or unbiased average to compare care. We find that the later is better.
Key-words : Tort law, standard of care, customary test, technological advancement test
JEL Classification : K13