Friehe, Tim; Langlais, Eric; Schulte, Elisabeth - In: Environmental and Resource Economics 81 (2021) 1, pp. 53-71
This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously established for the case in which only consumers suffer...
