incomplete contract theory. We use the framework of Aghionand Tirole (1997) and define the managerial control structure as …

determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields … efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation … higher efficiency as long as liability is violated. …

We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the … external effect inasmuch as liability obligations imply that consumers of competing products have to pay the high prices as …

reinforcement of physician liability for off-label use may be the preferred instrument for achieving dynamic efficiency. The … liability threat reduces the demand for off-label use, giving manufacturers an appropriate incentive to invest in extended …

determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields … efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation … higher efficiency as long as liability is violated. …

The theory of incomplete contracting is rival to that of complete contracting as a frame of reference to understand …

enforce German VAT law via a liability of platform operators (like Amazon and eBay). The consequences of this regulatory … the more strict enforcement is that platform operators want to avoid liability risks. The situation from the ecommerce …

Walter Eucken strongly rejected the institution of limited liability. From his point of view, only unrestricted full … liability was in conformity with the market order. This perspective misses important insights, as is shown with recourse to the … of limited liability. Second, one can realize further welfare gains within organizations by means of incentive contracts …