This paper analyzes the workings of liability when harm-inflicting consumers are present biased and both product safety …

This paper shows that the provision of consumer rights can decrease welfare when some consumers remain ignorant of … these rights. We find that consumers uninformed about a mandated warranty demand excessively safe products in some … circumstances. In other circumstances, uninformed consumers buy the efficient product variety like informed consumers but the former …

that a low-safety product is marketed at a low price to consumers with relatively small harm levels whereas the safer … product is sold at a high price to consumers with high levels of harm. Firms' expected liability payments are critically …. We vary the liability system's allocation of losses between firms and consumers. Shifting more losses to firms increases …

that a low-safety product is marketed at a low price to consumers with relatively small harm levels whereas the safer … product is sold at a high price to consumers with high levels of harm. Firms’ expected liability payments are critically …. We vary the liability system’s allocation of losses between firms and consumers. Shifting more losses to firms increases …

that a low-safety product is marketed at a low price to consumers with relatively small harm levels whereas the safer … product is sold at a high price to consumers with high levels of harm. Firms' expected liability payments are critically …. We vary the liability system's allocation of losses between firms and consumers. Shifting more losses to firms increases …