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Amount of precaution against such accidents

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Reference no: EM131263270

Accidents with trucks carrying hazardous wastes are fairly common. Suppose regulators enact a rule requiring that the perpetrators of such an accident be liable for a sum equal to the average damages of all such accidents in the industry. Would this lead trucking companies to take the socially efficient amount of precaution against such accidents?

Reference no: EM131263270

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