This Comment argues that in the allocation of pure economic loss caused by product failure, the negligence rule is generally more efficient than a strict liability rule and that a contract rule is almost always more efficient than a negligence rule. Part II presents a general discussion of the attributes of an economically efficient remedy. In Part III, three legal rules used to allocate pure economic loss are scrutinized under the standards set forth in Part II.
Heidi A. Irvin and Mark S. Carlson, Recovery of Pure Economic Loss in Product Liability Actions: An Economic Comparison of Three Legal Rules, 11 SEATTLE U. L. REV. 283 (1988).