Efficiency of Posner's Nuisance Rule: A Reconsideration

We claim that Posner's nuisance rule maintains the efficiency feature even under severe informational asymmetry. This paper, as a critical assessment of an overly complicated order-reporting mechanism by Kim [2002], argues that Posner's original value-reporting mechanism alone is enough to guarantee a socially efficient outcome, despite the plaintiff's occasional incentive to overreport.
Meyer, Wilhelm: Grundlagen des ökonomischen Denkens.