In case of a merger or an acquisition, a tort liability that arises from the seller's conduct is often imposed on the … buyer through the doctrine of successor liability. If the buyer has as much information about the potential liability as the … precaution. However, when the seller has more information about the potential liability than the buyer, there could be too little …

We analyze the impact of liability risks for malpractice on the optimal reimbursement schemes for hospitals. In our … motivation is biased towards quality. In our basic model without liability risks, we then find that either a fee … liability risks, mixed systems are in general optimal, and the variable part of costs that should be borne by the hospital is …