A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2018; you can also visit the original URL.
The file type is
Imperfect Information, Costly Litigation and Product Quality" Marilyn Simon In this paper, the effect of costly litigation and imperfect information on the quality of output is examined. An equilibrium is described in which consumers are uncertain about the result of a law suit. It is found that, for a wide range of due care standards, there will be both negligent and non-negligent firms in the market. Furthermore, as the population becomes more risk averse, the proportion of output which isdoi:10.2307/3003515 fatcat:dpe5xnvrebc2hlv6j4bgmxisb4