Law and economics has been established as an important sub-discipline of economics. Looking at the ?eld, it is undisputed that the economics of tort law has been the subject of much study early on and continues to be. The analysis in that realm is centered on the internalization of external e?ects by the means of liability law, i.e. the allocation of a liability burden possibly depending on the behavior of parties involved in an accident. In the by now standard framework, introduced by path-breaking contributions such as Calabresi (1970) and Brown (1973), the outcome with regard to...