A firm sells a dangerous product to heterogeneous consumers. Higher consumer types suffer accidents more often but may enjoy higher gross benefits. The firm invests resources to reduce the frequency of accidents. When the consumer's net benefit function (gross benefits minus expected harms) is...

This paper analyzes the workings of liability when harm-inflicting consumers are present biased and both product safety and consumer care influence expected harm. We show that present bias introduces a rationale for shifting some losses onto the manufacturer, in stark contrast with the baseline...

Market forces, supplemented by government policy, affect how firms and households jointly determine product and workplace safety levels. After developing the economic theory of how labor and product markets pair prices and health risks we then explain the effects of the relevant government...