Should Platforms be Held Liable for Defective Third-Party Goods?
Speaker: Professor Yusuke Zennyo
Affiliation: Kobe University
Location: Room S402, Social Sciences Building (#24), UQ St Lucia Campus
Abstract
This paper presents an examination of issues related to liability for harm to consumers caused by goods sold by third-party sellers on e-commerce platforms. A model of platform design is presented in which a platform chooses its liability design, specifying the percentages of consumer harm that should be compensated respectively by the defective good seller and the platform. The model shows that the platform assumes no liability. Full liability is imposed on sellers, who enhance their defect-reducing investments. Regulations requiring minimum standards of platform liability improve customer surplus under conditions of moderate seller competition and weak platform market power.
About the presenters visit
If you would like to meet with Professor Zennyo contect: Dr Christiern Rose.
About School Seminar Series
The School of Economics General Seminar Series is held on Fridays. These are in-person and presented by a range of guest researchers from around Australia and internationally.