chapter  7
Existence and Efficiency of Equilibria: When Care is Multidimensional
ByRam Singh
Pages 23

Multidimensional care is the reality of many accident contexts. Nonetheless, the economic models of liability rules generally take the care to be unidimensional.1 True, some writings on liability rules, have modelled multidimensional care too. However, these works are based on the assumption that under every liability rule, there exists a unique equilibrium. The assumption regarding existence of equilibrium has been made without scrutinising the nature of conditions that are necessary for existence of equilibria. Moreover, the existing literature has not examined the nature of second-best liability rules.