Economic Analysis of Products Liability: Theory
This chapter provides a survey of much of the recent theoretical analysis of products liability. We start by describing an idealized model and providing the specific economic assumptions which underpin it. Later sections examine the effects of relaxing these assumptions, which has been the focus of much of the theoretical work over the last few decades. These modifications include: informational differences between producers and consumers that arise over the life of a product; incorporation of endogenously-determined costs, such as those that arise from investment in care; and evaluating contractual versus mandatory liability.
|Date of creation:||Jun 2011|
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- Daughety, Andrew F & Reinganum, Jennifer F, 1995.
"Product Safety: Liability, R&D, and Signaling,"
American Economic Review,
American Economic Association, vol. 85(5), pages 1187-1206, December.
- Daughety, Andrew & Reinganum, Jennifer, 1992. "Product Safety: Liability, R & D and Signaling," Working Papers 94-17, University of Iowa, Department of Economics, revised 1994.
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- Andrew F. Daughety & Jennifer F. Reinganum, 2006. "Products Liability, Signaling and Disclosure," Vanderbilt University Department of Economics Working Papers 0625, Vanderbilt University Department of Economics.
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- Doughety, Andrew F & Reinganum, Jennifer F, 1997. "Everybody Out of the Pool: Products Liability, Punitive Damages, and Competition," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 410-432, October.
- Steven Shavell, 1994. "Acquisition and Disclosure of Information Prior to Sale," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 20-36, Spring.
- Ben-Shahar, Omri, 1998. "Should Products Liability Be Based on Hindsight?," Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(2), pages 325-357, October. Full references (including those not matched with items on IDEAS)
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