Firm Liability When Third Parties and Consumers Incur Cumulative Harm
分析了当消费者和第三方或环境遭受损害时,不同责任规则的社会排序,发现若第三方或环境损害足够重要,严格责任优于无责任和过失责任的传统结论可能被推翻。
Abstract This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously established for the case in which only consumers suffer harm (Strict Liability dominates No Liability and Negligence) may be reversed if harm to third parties or the environment is sufficiently important.