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 …

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 …

online platforms. In this paper, we provide an economic appraisal of platform liability that highlights the effects of a … stricter liability rule on several key variables such as prices, terms and conditions, business models, and investments. We … also discuss the impact of the liability regime applying to online platforms on competition between them and the incentives …

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 …

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 …

compliant than individuals are. This drop in compliance is driven by the joint, rather than the individual, liability of team …

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 …