Wednesday, March 5, 2014

West Virginia Chemical Spill

Earlier this year Freedom Industries in West Virginia spilled a harmful chemical into the Ohio River resulting in approximately 300,000 people from having access to clean water.  Bloomberg reports that the lawsuits are also pouring in the West Virginia area.

This is (an unfortunate) example of a tort.  In Law & Economics we examine how to determine the optimal damage from this type of tort along with the incentive of punitive damages - as mentioned in the article linked above.

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