Economic Analysis of Product Liability
Faure, M.G., “Economic Analysis of Product Liability”, in Machnikowski, P. (ed.), European Product Liability. An Analysis of the State of the Art in the Era of New Technologies, Antwerp, Intersentia, 2016, 619-665; ISBN 9781780685243
48 Pages Posted: 27 May 2019
Date Written: January 1, 2016
This chapter in a book on European product liability provides a summary of the economic approach to product liability. The economic theory of product liability based on the Coase Theorem is explained. Next, product liability when damage is suffered by third parties is analyzed. Specific attention is paid to the EU Product Liability Directive and to more recent literature.
Keywords: product liability, Coase Theorem, third party liability, insurance, strict liability, multiparty causation, signaling, development risk
JEL Classification: K13
Suggested Citation: Suggested Citation