Eastern Economic Journal

FIGURE 6

FROM:

An Economic Analysis of Libel Law

Manoj Dalvi and James F Refalo

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Figure 6.

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Comparison of liability standards. The investigation region for strict liability (the dashed line) is a subset of the region under negligence where stories are investigated and published if true. Under negligence, p n-lbtriple prime and p ntriple prime are an upper bound to the region where stories are investigated and published if true, and p n' is the corresponding lower bound. The upper and lower boundaries under the strict liability standard are p s" and p s', respectively. C' and C s" are always strictly less than C n", but C s" may be greater, or less than, C'.

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