The way I was brought up, I've pretty much been trained to understand intellectually* that people on foot have right of way, but act as though the drivers did. It seems to make sense to me, since have much less freedom to turn or suddenly stop and so are more predictable and the pedestrian has the easier time between the two of them to make the ultimate decision, but if anything happens the pedestrian has much more to lose so the driver should bear more responsibility.

*based entirely on hearsay - I must admit I've never read a statute in my life that spelled out who had right of way.