Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when … acting as agents under contract and taking costly actions to acquire information before taking decisions. Limited liability … actions. The resulting decisions may be less, rather than more, risky. Making a decision after acquiring information provides …

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

when the agent is protected by limited liability. In this paper, we investigate how the principal should construct the … globally incentive compatible under limited liability, if local incentive constraints are strictly satisfied. We identify …

economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …

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 …

support. Budget support increases the involvement of recipient governments in the decision-making process and can thus be an … example of a “delegation-scheme.” Conversely, project aid represents a more “centralized” type of aid. According to the theory …

-agent framework, it analyzes two alternative policy-decision schemes — ‘decentralization' and ‘centralization' — when ‘knowledge … government levels. It is shown that, depending on which level of policy decision-making controls the degree of decentralization … optimal choice of policy-decision schemes. The empirical analysis shows that countries' choices depend on the relative …