Torts and innovation.
This Essay exposes and analyzes a hitherto overlooked cost of tort law: its adverse effect on innovation. Tort liability for negligence, defective products, and medical malpractice is determined by reference to custom. We demonstrate that courts' reliance on custom and conventional technologies as the benchmark of liability chills innovation and distorts its path. Specifically, recourse to custom taxes innovators and subsidizes replicators of conventional technologies. We explore the causes and consequences of this phenomenon and propose two possible ways to modify tort law in order to make it more welcoming to innovation.
Parchomovsky
Gideon
G
University of Pennsylvania Law School, Philadelphia, Pennsylvania and Bar-Ilan University School of Law, Israel.
Stein
Alex
A
D003257:Consumer Product Safety / Q000331:legislation & jurisprudence*; D003469:Culture; D004059:Diffusion of Innovation; D006801:Humans; D016365:Liability, Legal; D008318:Malpractice / Q000331:legislation & jurisprudence*; D012945:Social Values; D014481:United States