This paper explores whether platform liability should be strict or negligence based. In the model, two-sided platforms …), the price charged to consumers is positive (zero). If the consumers’ price is positive, then both strict liability and … negligence lead to efficient precautions and consumer participation. If the price is zero, then strict liability stimulates more …

liability for accident losses and invests efficiently. When the consumer's net benefit function is increasing in consumer type …, the firm contractually disclaims liability and under-invests. Legal interventions, including products liability and limits …

This is a survey of legal liability for accidents. Three general aspects of accident liability are addressed. The first … is the effect of liability on incentives, both whether to engage in activities (for instance, whether to drive) and how …-bearing and insurance, for the liability system acts as an implicit insurer for accident victims and it imposes risk on potential …

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 …

plays an important role in the choice between liability rules. Specifically, positively correlated harms favor a liability … liability rule that pools risks together, as in strict liability. The same applies when parties can purchase costly insurance … (first party or third party). This policy recommendation is in line with current products liability law, which places design …

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 …

competition. -- product liability ; product safety ; market power ; level of damages ; punitive damages …

With the growing economic and societal importance of online platforms, the question of their liability for illegal … appropriate liability rule for hosting service providers and derive policy recommendations for an efficient liability regime in … to the presence of externalities and asymmetric information problems, warranting some form of liability rules. However …