Products liability when consumers are salient thinkers
| Autor: | Cat Lam Pham, Tim Friehe |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Salience (language) 05 social sciences Liability ComputingMilieux_LEGALASPECTSOFCOMPUTING Outcome (game theory) Product liability Microeconomics Competition (economics) Product (business) Salient 0502 economics and business Business 050207 economics Finance 050205 econometrics |
| Zdroj: | Economics Letters. 186:108844 |
| ISSN: | 0165-1765 |
| DOI: | 10.1016/j.econlet.2019.108844 |
| Popis: | This paper analyzes how product liability influences choices by a brand manufacturer who faces competition from a competitive fringe when consumers are salient thinkers. The market outcome critically depends on the losses that are shifted to the firm, that is, the traditional irrelevance of liability assignments no longer holds. Moreover, we show that the brand manufacturer implements suboptimal product safety and explain that the firm, if subjected to the negligence rule, may choose to be negligent. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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