, 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 …

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 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 …

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

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …

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 …

Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing …