個案資料

Business Liability and Economic Damages is a five-chapter book published by Business Expert Press in 2016 and written by Scott D. Gilbert, associate professor of economics at Southern Illinois University, Carbondale. This book considers potential liability in business and provides insight into estimating the damages associated with liability. The author reviews the roles of insurance, the legal system, and the economist in evaluating liability and compensation for loss. He also provides basic mathematical formulas involved in determining economic loss, illustrating concepts with examples where relevant. Each chapter begins with learning objectives and ends with a short list of exercises to reinforce key concepts. In Chapter 3, Compensation for Loss (35 pages), the author considers different perspectives on the transfer of economic opportunity from one party to another. First, he looks at the principles behind how a court awards an appropriate compensation amount. Second, he looks at how markets impact compensation estimates and reviews basic pricing formulas. He explains how to estimate compensation due to the wrongful loss of earnings streams and explains the asset pricing formula. He provides examples of other useful mathematical formulas, including how to treat uncertainty. He also reviews loss related to the option to pursue economic opportunity, both as real options and financial options, and uses examples to illustrate the relevant formulas. The chapter includes an appendix on risk-averse asset pricing with additional explanation of the follow-up formulas to the law of one price.

• Losses
• Legal liability
• Economics