Location choice as a signal for product quality: the economics of 'made in Germany.'

Article Abstract:

Product location can influence consumers' attitudes to product quality. Companies may select high-cost locations in order to signal that their products are of high quality. High wages are not the result of high-quality production in this model. European labeling regulations can lead to discrimination against high-cost countries like Germany. There are unanswered questions as to the impact of relocation of production, for example where Mercedes Benz opens a plant in Alabama. Further research is needed to tackle this issue.

Production Management, Germany, Industrial locations, Industrial location

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Dishonesty and libel law: the economics of the 'chilling' effect

Article Abstract:

Defamation can be categorized as slander, where it occurs in transitory form, and libel, involving permanent publication. Defamation involves untrue statements and it can affect the willingness of the media to publicise wrong doing, which has been described as a 'chilling' effect. There is a case for not setting compensation at high levels. There is no problem if the media are able to distinguish between dishonest and honest statements, though welfare can be diminished if there are problems in separating the two.

Laws, regulations and rules, Libel and slander, Mass media

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Informed courts, uninformed individuals, and the economics of judicial hindsight

Article Abstract:

Courts should bear in mind the information possessed by the parties involved at the time when the events took place that led to a court appearance. Legal action may result because those involved have imperfect information. This is relevant to product liability, since companies can spend more time on research of possible hazards if they are likely to be held liable for hazards about which information was not generally available at the time of the event.

Analysis, Product liability, Corporations, Products liability, Tort liability, Law and economics, Law and economics (Jurisprudence), Tort liability of corporations

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