Citation

Hamilton SF, Sunding DL. Int. Rev. Law Econ. 2000; 20(2): 269-283.

Copyright

(Copyright © 2000, Elsevier Publishing)

DOI

10.1016/S0144-8188(00)00029-6

PMID

unavailable

Abstract

The article characterizes the entry incentives provided by increases in product liability under various forms of competition. It is demonstrated that the entry of small, high-cost firms is likely to occur in imperfectly competitive markets when the average damage increases with industry output. Special cases are considered, including Cournot-Nash oligopoly and dominant firm-competitive fringe.