Liability laws designed to compensate for harms caused by defective products may also affect innovation. We examine … this issue by exploiting a major quasi-exogenous increase in liability risk faced by US suppliers of polymers used to … manufacture medical implants. Difference-in-differences analyses show that this surge in suppliers' liability risk had a large and …

incentives: liability, withdrawal, and authorization. Liability should be preempted to avoid chilling of activities that generate … large positive externalities, consistent with the preemption doctrine. Liability should be used to discourage excessive …

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 …

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 …

This chapter in a book on European product liability provides a summary of the economic approach to product liability …. The economic theory of product liability based on the Coase Theorem is explained. Next, product liability when damage is … suffered by third parties is analyzed. Specific attention is paid to the EU Product Liability Directive and to more recent …

This paper explores the impact of product liability on vertical product differentiation when product safety is … perfectly observable. In a two-stage competition, duopolistic firms are subject to strict liability and segment the market such … product is sold at a high price to consumers with high levels of harm. Firms' expected liability payments are critically …

’s Product Liability Directive. It suggests that such reforms could be structured around 10 'Guiding Principles' …

Products liability in the digital age entails reckoning with the transformative shift away from in-person purchases … raising the question of how liability rules should respond, especially in light of the development of international e …-commerce and cross-border sales. Consideration of liability for online platforms as “cheapest cost avoiders” reveals the mechanism …

We describe how product liability interacts with regulatory product approval in influencing a firm's incentives to … information acquisition incentives under both full and limited liability. We highlight efficiency inducing liability rules. …