ABSTRACT
In this chapter we provide an economic analysis of some of the most important rules of tort law. What is a tort? A tort is a cause of action, that is, it provides the grounds for a lawsuit for damages. One definition is that a tort is a wrong, other than a breach of contract, that subjects the wrongdoer to civil liability.1 To be subject to tort liability, the defendant’s conduct must fall within one of the established common-law categories that has come to be recognized as a tort, some of which are trespass, nuisance, negligence, strict liability in tort, libel, slander, intentional infliction of emotional harm, assault, battery, conversion, and fraud. It has been suggested that in general, tort liability is based on conduct that is socially unreasonable, or on an unreasonable interference with the interests of others. However these generalizations are not very useful, since conduct that is harmful to others is not a basis for tort liability unless it falls within the definition of a recognized tort.2 By far the most important torts, in terms of their share of total actions filed, or total payments for common-law tort liability, are negligence and strict liability in tort.
