The Case from the Evidence Property rules vs liability rules The legal system mostly gets that right,but... Mostly doing it the other way is not just inefficient but obviously unworkable Other general patterns seem to fit the theory The right to grow crops on land is bundled with the right to walk on it I no longer own my property up to the heavens Tort law as a Pigouvian tax Negligence as a solution to the joint causation problem Posner offers various detailed rules that he argues fit Strict liability for ultrahazardous activities Because activity level(keeping a pet lion)is an important variable The most reliable precaution is not to ·Eggshell skull rule Because the potential tortfeasor faces an average cost of taking the action That reflects the low probability/high cost outcome The alternative is to pay nothing when there is no injury,only an average when there isThe Case from the Evidence • Property rules vs liability rules • The legal system mostly gets that right, but … • Mostly doing it the other way is not just inefficient but obviously unworkable • Other general patterns seem to fit the theory • The right to grow crops on land is bundled with the right to walk on it • I no longer own my property up to the heavens • Tort law as a Pigouvian tax • Negligence as a solution to the joint causation problem • Posner offers various detailed rules that he argues fit • Strict liability for ultrahazardous activities • Because activity level (keeping a pet lion) is an important variable • The most reliable precaution is not to • Eggshell skull rule • Because the potential tortfeasor faces an average cost of taking the action • That reflects the low probability/high cost outcome • The alternative is to pay nothing when there is no injury, only an average when there is