Shameless plug for my teaching note entitled "Moral Hazard, Adverse Selection, and Tort Liability"

I find it interesting :-)) economic consequences of this legal rule. Specifically, strict liability tends to aggravate various moral hazard and adverse selection problems, which in turn adversely affects consumer welfare. The note concludes with a discussion of Professor Steve Magee’s interesting (and somewhat controversial) theory on the optimal number of lawyers in an economy. Please send me your comments about this note by emailing me at]]>

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