Cumulative Harm, Products Liability, and Bilateral Care

Andrew Daughety and Jennifer Reinganum ()

No 13-06, IAST Working Papers from Institute for Advanced Study in Toulouse (IAST)

Abstract: We extend consideration of cumulative harm in products liability to the case of bilateral care. For this specification, the level of care and the level of output chosen by the firm are inextricably interrelated, and different liability regimes yield different combinations of care and output. As in the case of bilateral care with proportional harm, strict liability by itself leads to moral hazard on the part of the consumer, but strict liability with a defense of contributory negligence on the part of the consumer is now a resilient (that is, both robust and convergent) liability rule when harm is cumulative.

Date: 2013-06
New Economics Papers: this item is included in nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://iast.fr/pub/27401
http://www.idei.fr/doc/wp/2013/wp_iast_1306.pdf Full text (application/pdf)

Related works:
Journal Article: Cumulative Harm, Products Liability, and Bilateral Care (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tse:iastwp:27401

Access Statistics for this paper

More papers in IAST Working Papers from Institute for Advanced Study in Toulouse (IAST) Contact information at EDIRC.
Bibliographic data for series maintained by ().