A potentially dangerous product is supplied by a competitive market. The likelihood of a product-related accident depends on the unobservable precautions taken by the manufacturer and on the type of the consumer. Contracts include the price to be paid by the consumer ex ante and stipulated...

Product recalls are ubiquitous in a variety of industries such as food, cosmetics, hi-tech and pharmaceuticals. However, recalls differ in their category level impact depending on the product category as well as the underlying reason for the recall. We focus on product categories where sales...