H. Demsetz claimed that under certain conditions private firms can supply public goods efficiently. Recently, it was argued that the optimality of the Demsetz equilibrium is destroyed when consumers engage in fraudulent behavior. In this paper, fraudulence is explicitly introduced in the Demsetz...

This paper analyzes the output, abatement, and investment decisions made by a monopolistic polluter under environmental liability law. The model applied considers both integrated and end-of-pipe abatement technologies. We find that in the case of fixed technology, in many instances negligence...