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On consumer preferences for (partial) products liability

Author

Listed:
  • Tim Friehe

  • Eric Langlais

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

  • Elisabeth Schulte

Abstract

Traditional law and economics analyses of products liability find that different liability regimes lead to the same market outcome, implying that risk-neutral consumers are indifferent between products liability and no products liability. We present a setup in which a group of consumers supports the implementation of products liability although its enforcement is costly. All consumers may prefer the same level of (partial) products liability.

Suggested Citation

  • Tim Friehe & Eric Langlais & Elisabeth Schulte, 2018. "On consumer preferences for (partial) products liability," Post-Print hal-01887294, HAL.
    • Handle: RePEc:hal:journl:hal-01887294
    DOI: 10.1016/j.econlet.2018.10.006
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    Cited by:

    1. Tim Friehe & Eric Langlais & Elisabeth Schulte, 2022. "Firm Liability When Third Parties and Consumers Incur Cumulative Harm," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 53-71, January.

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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

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