Stovall Home Products: Practicing Prudence to Avoid Liability

Products Liability

Products Liability , Signaling and Disclosure

In this paper we examine the behavior of a firm that produces a product with a privatelyobserved safety attribute; that is, consumers cannot observe directly the product’s safety. The firm may, at a cost, disclose its safety prior to sale; alternatively, if a firm does not disclose its safety then consumers can attempt to infer its safety from the price charged. The liability system is importan...

Products Liability--An Analysis of Market Share Liability

From Home Country to Home Base: a Dynamic Approach to the Liability of Foreignness

FROM HOME COUNTRY TO HOME BASE: A DYNAMIC APPROACH TO THE LIABILITY OF FOREIGNNESS NAN ZHOU1,2 and MAURO F. GUILLÉN* 1 E&Y SKOLKOVO Institute for Emerging Market Studies, Moscow School of Management Skolkovo, Beijing, China 2 Developement Planning Department, China Minsheng Banking Corporation, Beijing, China 3 Lauder Institute, The Wharton School, University of Pennsylvania, Philadelphia, Penn...

Avoiding Liability: An Alternative Route to More Secure Products

A debate rages over imposing liability on manufacturers or users of insecure systems. Imposing either liability or fines on the creators or users of insecure systems may work, but how are buyers to distinguish? We propose a variety of signals and analyze them. We evaluate when signals may be preferable to liability as a mechanism for enhancing security.