parent nodes: Coase Theorem | liability rule | nuisance | property rule | strict liability
Epstein restatement
Owners have rights in property rule entitlements protected by strict liability.
The probability that a entitlement will be enforced according to strict liability is lower when:(1) administrative costs for claim resolution are high
(2) transaction costs for voluntary reassignment of entitlements is high
(3) the value to the interested parties of the entitlement whose transaction is publicly mandated is low
(4) implicit in-kind compensation from all to all precludes any systematic distribution of wealth among the interested parties.