"The Economics of a Disaster" represents a major contribution to
the understanding of the economics of liability and damages. It is
based on the assumption that if people know they can be held
responsible for some or all of the costs or damages sustained in an
environmental accident, they will change their behavior to make the
accident less likely to occur or to reduce the damages should it
occur. The work develops a framework to examine and measure changes
in market conditions after a disaster, showing the kinds of
information that need to be collected and analyzed. Based on the
Exxon Valdez case, this work provides an interesting framework for
practitioners, specialists, and scholars in the fields of business,
economics, law, and environmental studies.
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