ABSTRACT

Instead, when triggering high litigation levels, product liability does produce a negative technology-chilling effect. Indeed, if the cost that litigation places on producers does not correspond to an observable increase in product safety, the very purpose of this body of rules is defeated. It would therefore be advisable to conceive of alternative mechanisms, eventually disentangling the two desired objectives, namely that of incentivizing safe design and construction and that of providing adequate compensation when an accident occurs.