This study examines the association between product recall and CEO compensation. Using a sample of U.S. automobile industry product recalls from 1999 to 2018, we find that product recalls have significant negative impacts on CEO compensation. Our findings hold after controlling for the common...

When a multimarket firm's product causes harm to consumers, should the firm bear uniform or variable liability across markets? We analyze a two-market model, in which under the variable rule the firm's liability rises above the standard level in market 1 but falls below it in market 2, while...

The EU's Product Liability Directive (PLD) determines the rules for strict product liability in the EU. It establishes a framework in which manufacturers' liability is determined solely based on the presence of defects in the product, regardless of the manufacturer's fault. The PLD is intended...

In the manuscript I derive a fundamental quantitative model of normal legal behavior in liability law and describe how deviating from this behavior results in liability in an abstract world where unlawful damage should be minimalized. I start with a logical model in a deterministic world and...

This article theoretically analyzes the effects of the platform liability for the third-party products on incentives of the third-party vendors to make efforts to produce safe products. For this purpose, I suppose that the platform behaves as a mere marketplace and does not screen vendors or...

This article compares the classic liability rules, negligence and strict liability, under the hypothesis that injurers and victims formulate subjective beliefs about the probabilities of harm. Parties may reasonably disagree in their assessment of the precautionary measures available: a measure...

Dangerous products may give rise to colossal liability for commercial actors. Indeed, in 2021, the U.S. Supreme Court denied certiorari in Johnson & Johnson v. Ingham, permitting a more than two billion dollar products liability damages award to stand. In his dissenting opinion in another recent...

Dogs have been regarded as friends by humans for generations. But what about the culpability for the harm caused by dogs. At different instances case laws show that dogs have caused the most significant harms. Tort law developed from an early position of owner-friendly laws to victim centric by...