the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability … interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the … intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the …

This paper addresses the role of product liability for the emergence and development of smart products such as … autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market … shifting more liability on the producers of AVs. First, while this improves the safety of AVs in the long run, the safety stock …

the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability … interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the … intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the …

Does enhanced shareholder liability reduce bank failure? We compare the performance of around 4,200 state …-regulated banks of similar size in neighboring U.S. states with different liability regimes during the Great Depression. The distress … rate of limited liability banks was 29% higher than that of banks with enhanced liability. Results are robust to a diff …

We focus in this paper on the effects of court errors on the optimal sharing of liability between firms and financiers …, governments and courts we show, through numerical simulations, the distortions in liability sharing between firms and financiers … firm innocent of inappropriate care) errors. This role is considered in a context where liability sharing is already …

We contrast alternative liability rules for social control of product risks when heterogeneous consumers considering …’ mispredictions vary with the prevailing liability regime. We first characterize the consumers’ purchasing decision and the … equilibrium levels of safety and activity from the product’s usage under no liability, strict liability, and negligence rule. We …