This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is … convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously … established for the case in which only consumers suffer harm (strict liability dominates no liability and negligence) may be …

Free mobility has not been thought of as an effective tool to correct over- or underproduction of externalities. In … this paper, we establish that foot voting can internalize the cost of negative externalities. Workers have to accept the … can effectively influence the equilibrium wage and rent to reflect the externalities by threatening to walk away if the …

We study a commons problem under uncertainty, where individual actions affect the risk of a future damage event. We … condition on the relationship between actions and damage probability and the opportunity costs of precaution for this result to …

joining the IEA set emissions to internalize some exogenously given fraction of the externalities that own emissions cause on …