There have also been efforts to use the VSL estimates as a compensation measure in
wrongful death and personal injury cases. Although this approach has some advocates
(Posner and Sunstein, 2005), the VSL is not well suited to serve as a compensatory dam-
ages measure. Use of the VSL for this purpose, known as the hedonic damages approach,
employs a deterrence value for prevention of small risks of death as the compensatory
damages amount, which will lead to compensation levels that exceed the optimal insur-
ance amount. Nevertheless, the VSL could have two constructive functions in litigation
contexts. First, it could provide ...
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