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 …

liability system is important because it is a determinant of the firm's full marginal cost, which consists of both manufacturing … cost and liability cost. If the firm does not bear substantial liability for a consumer's harm, then the firm's marginal … does bear substantial liability for a consumer's harm, then the firm's marginal cost consists of both manufacturing cost …

This chapter provides a survey of much of the recent theoretical analysis of products liability. We start by describing … mandatory liability …

implication for products-generated torts that product performance concerns (e.g., issues of care and of liability for harm) can be … analysis finds that all liability regimes (strict liability, no liability, and negligence based on the socially-efficient due … possible liability regimes now produce different outcomes and yield different implications for social efficiency.This implies …

systems of regulation and liability operate complementarily. The question is why two legal tools that are meant to achieve and …-marketing surveillance duties, and ex-post facto liability, linked to the pre-marketing available knowledge. Since the key issue in both … regulatory and liability assessments related to pharmaceuticals is the one of “relevant knowledge”, we claim that the legal …

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 …

This paper addresses the role of product liability for the emergence and development of smart products such as … autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market … shifting more liability on the producers of AVs. First, while this improves the safety of AVs in the long run, the safety stock …

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 …