In a world with risk-neutral agents, liability rules will only induce efficient behaviour if these rules impose the …

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 …

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 … return. Further results on the form of contracts are also derived. -- managers ; risky decisions ; limited liability …

, 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 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 …

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 …