4 ms·
> Regulations and liability don't care about common sense. In fact, they supersede common sense. Exactly. And there's a result in economics called the "Coase t
by jey 2y ago
> Regulations and liability don't care about common sense. In fact, they supersede common sense.
Exactly. And there's a result in economics called the "Coase theorem" that basically says that as long as there's clear liability assignment, the negative externality (serious allergic reactions) can be efficiently avoided, in theory. So having regulations that make it unambiguous who is responsible for each step creates a better outcome for society (fewer deaths from allergic reactions).
https://en.wikipedia.org/wiki/Coase_theorem https://en.wikipedia.org/wiki/Coase_theorem