Gesundheit, Arzneimittel, Wohlfahrtsökonomik, Extra-Welfarismus. - Since 1961 access to market for innovative pharmaceuticals was increasingly regulated. The first step was a simple registration procedure, followed by federal licensing in 1978. Since 1989 the licensing was complemented by price...

We consider an environment in which there is substantial uncertainty about the potential negative external effects of AI algorithms. We find that subjecting algorithm implementation to regulatory approval or mandating testing is insufficient to implement the social optimum. When testing costs...