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IntroductionLiability and deterrence: basic theory -- Liability of firms -- Factors bearing on the determination of negligence -- Causation and scope of liability -- The magnitiude of liability: damages -- Other topics in liability -- The allocation of risk and the theory of insurance -- Liability, risk-bearing, and insurance: basic theory -- Liability, risk-bearing, and insurance: extensions to the basic theory -- Liability and administrative costs -- Liability versus other approaches to the control of risk -- Critical comments.