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-Consider the Game Depicted in Figure 14

Question 6

Multiple Choice

  -Consider the game depicted in Figure 14.12. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is: A)  No liability. B)  Pure strict liability. C)  Negligence with contributory negligence. D)  Strict liability with contributory negligence. E)  Comparative negligence.
-Consider the game depicted in Figure 14.12. If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The payoffs from alternative strategy profiles suggest that the prevailing tort law regime is:


A) No liability.
B) Pure strict liability.
C) Negligence with contributory negligence.
D) Strict liability with contributory negligence.
E) Comparative negligence.

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