Question 139 privatization of prisons p 509

Question 13.9 (Privatization of Prisons) p. 509
Competition among sellers improves the quality of goods for consumers. Could this mechanism
work for the private supply of prisons?

living standards can be applied and enforced properly, this will likely not happen. Hence, public
prisons owned by the state can be more regulated than private ones.
Question 6:19 (When Courts Make Mistakes) p. 220
“In general, the injurer’s precaution responds to court errors in setting the legal standard under a
negligence rule.” Is this statement true for all forms of the negligence rule, or only for the simple
negligence rule?
Question 6:20 (When Courts Make Mistakes - Compensation) p. 222
“Excessive damages increase expected liability under a negligence rule, which results in excess
precaution.” Explain the mistake in this proposition.
Question 6:21 (When Courts Make Mistakes - Liability) p. 222
“If the legal standard of care in a negligence rule is necessarily vague, the court should set it
below the level of efficient precaution.” Explain the economic argument in favor of this
proposition.