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A Note on the Optimality of Domain-Specific Liability

Author

Listed:
  • Eric Langlais

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Tim Friehe
  • Elisabeth Schulte

Abstract

This paper analyses the socially optimal sharing of liability when both consumers and the environment incur harm from the activity of a monopolistic firm. We show that the optimal allocation depends on the domain-specific harm (consumers vs environment) as well as on the specific relationship between harm and output (proportional vs cumulative).

Suggested Citation

  • Eric Langlais & Tim Friehe & Elisabeth Schulte, 2022. "A Note on the Optimality of Domain-Specific Liability," Post-Print hal-03640759, HAL.
    • Handle: RePEc:hal:journl:hal-03640759
    as

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    Keywords

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    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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