Document Type

Response or Comment

Publication Date

2004

Center/Program

Center for Contract and Economic Organization

Center/Program

Center on Corporate Governance

Abstract

My article attempts to strike a balance and find a middle ground between the polar positions of those who favor strict liability (of whom Professor Partnoy is probably the most notable1) and recent critics who believe it would produce market failure.2 Necessarily, those who take a middle position are exposed to fire from both sides. Although I admire Professor Partnoy's originality and incisive style, I do not believe that the market could easily survive his reforms and suspect that he has undervalued the hidden costs of strict liability. Deterrence is needed-but there can be too much of a good thing!

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