The Costs of the Tort System

The efficiency of the tort system is difficult to measure because information about its benefits is so sparse. In particular, data on the damages avoided because of additional precaution are not readily available. Some costs associated with tort liability have been measured, however, and can be used in a limited evaluation of the cost-effectiveness of tort liability as a mechanism for compensating victims. Understanding the nature and magnitude of tort costs can also help policymakers identify options that would tend to control those costs while enhancing the benefits of the tort system.

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