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 …

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 …

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 …

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 …

liability law. The model applied considers both integrated and end-of-pipe abatement technologies. We find that in the case of … fixed technology, in many instances negligence produces more favorable results than strict liability in terms of social … welfare. The reason is that output under strict liability is always less than first-best output, whereas output under …

This paper explores the impact of product liability on vertical product differentiation when product safety is … perfectly observable. In a two-stage competition, duopolistic firms are subject to strict liability and segment the market such … product is sold at a high price to consumers with high levels of harm. Firms' expected liability payments are critically …

, we contrast producer liability and minimum quality standard regulation as alternative means of social control of product … relative desirability of strict liability vis-à-vis minimum quality standard regulation from a social welfare standpoint. We … also clarify when and why joint use of strict liability and minimum quality standard regulation welfare dominates the …

, we contrast producer liability and minimum quality standard regulation as alternative means of social control of product … relative desirability of strict liability vis-à-vis minimum quality standard regulation from a social welfare standpoint. We … also clarify when and why joint use of strict liability and minimum quality standard regulation welfare dominates the …

This paper explores the impact of product liability on vertical product differentiation when product safety is … perfectly observable. In a two-stage competition, duopolistic firms are subject to strict liability and segment the market such … product is sold at a high price to consumers with high levels of harm. Firms’ expected liability payments are critically …