When Does Product Liability Risk Chill Innovation? Evidence from Medical Implants

Corporate risk management: evidence from product liability

In this paper we examine the factors that determine how firms manage large, firmspecific risks, in this case, product liability. The risk of being sued for defective products or damage from defective products poses a small probability of a great loss to the firm. Product liability exposure arises from the firm’s choice of products and markets; choices that are fundamental to the firm’s business...

Legal Feature Product Liability for Medical Devices

Here we set out the European product liability regime as it applies to medical devices and examine key cases that indicate how the legislation is likely to be interpreted. Despite the fact that the strict liability regime has been in existence for many years, numerous issues have yet to be resolved and there continues to be a lack of harmonisation between the EU member states. We highlight a nu...

Product Innovation and Product Innovation Marketing: Theory and Microeconometric Evidence

This paper derives a three stage Cournot–oligopoly game for product innovation, expenditure on introducing the product and competition on the product market. Product innovation is assumed to increase consumer utility but is effective only if the innovating firm invests in marketing, so that consumers become aware of the newly developed product. Firms first decide whether or not to conduct produ...

How does Product Innovation Affect Export Margins?

The previous studies on the factors affecting trade margins emphasize the importance of exogenous trade costs; however, the role of product innovation has not been thoroughly investigated. Product innovation activities of a firm directly determine how efficiently its product matches the target consumers’ preferences and in turn significantly affects a country's trade growth patter. Therefore, w...

Lack of informed consent in medical malpractice and product liability cases: the burden of presenting evidence.