Heuristics and the Problem of Pure Economics Loss
Heuristics and the Problem of Pure Economics Loss

Summary/Abstract: The goal of this text is to pose hypotheses related to use of heuristics in the process of deciding cases related to pure economic loss and making laws governing liability for this phenomenon. Pure economic loss is a type of damage where the victim suffers only economically, i.e. there is no bodily harm of damage to property, and there is lack of contractual nexus between the victim and the tortfeasor. Pure economic loss is, in principle, not recoverable in the common law systems and, in principle, recoverable in civil law systems. Pure economic loss is a heterogenic category consisting of a variety of case types, here divided into (1) ricochet loss, (2) transferred loss, (3) loss induced by faulty information. Pure economic loss cases are usually more complex than physical injuries and consequential economic loss, as they may involve a loss of profits. This paper explores the use of heuristics in the process of deciding pure economic loss cases and in process of forming general norms related to them.

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