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This paper examines the liability and labeling approaches to regulating product safety. Stronger product liability increases producer care, which then has a negative lulling effect on consumer attention to warning labels. By contrast, more visible warning labels increase such consumer care,...
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affects the optimal price/price markup or optimal quantity. A monopoly example is used to show that seemingly strong … uncertainty types can lead to quite special results. Monopoly examples of the newsboy problem type are further used to show that …
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