Use of the VSL for this purpose, known as the hedonic damages approach, employs a deterrence value for prevention of small risks of death as the compensatory damages amount, which will lead to compensation levels that exceed the optimal insurance amount. Nevertheless, the VSL could have two constructive functions in litigation contexts. First, it could provide a reference point for assessing whether a company’s investments in product safety struck an efficient benefit-cost balance ( Viscusi, 2007 ). In addition, if the function of the damages award is deterrence rather than insurance, as in the case in which punitive damages are awarded, then a total damages value linked to the VSL will establish efficient levels of incentives ( Hersch and Viscusi, 2010b ). In contemporary legislation theory, legislation is approached from roughly two different models: law as symbol vs. law as instrument. Each model offers its own specific perspective from which in concrete cases legislation can be described and evaluated. In the Law As Symbol (LAS) model legislation is seen as an ongoing communicative and interactive process in which various actors in society—the legislator, officials and citizens—work together on an equal level to create and implement legislation.
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