Studies have shown that even in cases of clear negligence, patients are less likely to sue doctors who they like, that is, doctors who treat them kindly and are apologetic when things go wrong.
1) First, imagine a world where doctors do not have liability insurance. In order to face correct incentives for precaution, should "nice" doctors be subject to higher punitive damages when they get sued? Explain.
b) Next, imagine a world where doctors do have liability insurance, and pay their own premiums, which go up each time they are successfully sued. In this world, explain why you might not want to be treated by a nice doctor.