realm is centered on the internalization of external e?ects by the means of liability law, i.e. the allocation of a … liability burden possibly depending on the behavior of parties involved in an accident. In the by now standard framework …

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 harm (strict liability dominates no liability and negligence) may be …

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 harm (strict liability dominates no liability and negligence) may be …

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 harm (Strict Liability dominates No Liability and Negligence) may be …

This paper analyzes the workings of liability when harm-inflicting consumers are present biased and both product safety … the manufacturer, in stark contrast with the baseline scenario in which strict consumer liability induces socially optimal … product safety and precaution levels. In addition, we establish that strict liability with contributory negligence may induce …