Foundations of Law and Economics
Intermediate
Least-Cost Avoider
The party or institution that can avoid a harm, reduce a risk, or produce relevant information at the lowest total cost.
Why It Matters
Least-cost-avoider reasoning informs negligence, product liability, gatekeeper duties, corporate monitoring, and financial supervision by asking who can prevent losses most efficiently.
Selected Literature
A short list of directly relevant archive entries.
1961
Intermediate
1970
Advanced
2004
Advanced
2016
Advanced
Related Cases
1947
Foundations of Law and Economics
United States v. Carroll Towing Co.
159 F.2d 169 (2d Cir. 1947)
Negligence, precaution costs, accident probability, and expected loss.
1707
Foundations of Law and Economics
Keeble v. Hickeringill
11 East 574, 103 Eng. Rep. 1127 (K.B. 1707)
Property protection, malicious interference, and incentives to make productive use of land.
1805
Foundations of Law and Economics
Pierson v. Post
3 Cai. R. 175 (N.Y. Sup. Ct. 1805)
First possession, capture rules, and the administrability of property rights in wild animals.
1854
Foundations of Law and Economics
Hadley v. Baxendale
9 Exch. 341, 156 Eng. Rep. 145 (1854)
Foreseeability, information disclosure, and limits on consequential damages for breach of contract.