Product Liability: the Case of an Asset with Random Life.

This article analyzes the risk factors that surround assets in commerce in the U.S. The risk is shared by three agents: the seller of the asset; the buyer; and an insurer. Assume that the buyer knows with certainty the form of the failure distribution but not the parameters. The seller and the insur...

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Publicado en:American Economic Review Vol. 64; no. 1; pp. 149 - 162
Autor principal: Brown, John P.
Formato: Artículo
Publicado: American Economic Association Mar1974
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Product Liability: the Case of an Asset with Random Life.
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        au: Brown, John P.
        affil: Associate Professor of Economics, Cornell Law School
      su:
        Commerce
        Manufactured products
        Purchasing agents
        Selling
        Insurance companies
        United States
      sug:
        subj:
          United States
          Commerce
          Manufactured products
          Purchasing agents
          Selling
          Insurance companies
      ab: This article analyzes the risk factors that surround assets in commerce in the U.S. The risk is shared by three agents: the seller of the asset; the buyer; and an insurer. Assume that the buyer knows with certainty the form of the failure distribution but not the parameters. The seller and the insurer still know the complete distribution with certainty. Assume that the true failure distribution is exponential with intensity parameter, so the probability density functions. The buyer is then presumed to know that the form of the distribution is exponential, but he does not know the value. Instead, the buyer's beliefs about the true value can be expressed as a probability distribution about the true value with density.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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