EX ANTE INVESTMENT, EX POST REMEDIES, AND PRODUCT LIABILITY*
研究了产品责任如何影响企业事前安全投资与事后补救行为，发现责任强度与投资呈倒U型关系，并比较了完全责任与部分责任下的消费者剩余与社会最优条件。
A firm can increase product safety through ex ante investment and can remedy quality problems after sales. An increase in product liability raises returns to ex ante investment through higher consumer demand, but may also negatively affect the investment incentive due to more ex post remedial activities. The trade‐off between these “output” and “substitution” effects can result in an inverted U‐shaped relationship between product liability and ex ante investment. We find that the firm prefers full liability, but consumer surplus can be higher under partial liability. We further identify conditions under which full liability or partial liability is socially optimal.