Speaker: Prof. Lin Ping, Department of Economics, Hong Kong Lingnan University, HK
Date: May 19, 2016
Time: 2:00 pm-3:30 pm
Location: Room B423, Juxian Lecture Hall, Zhixin Building, Central Campus
Sponsor: the School of Economics
We study the effects of tort liability insettings where firms choose novelty and safety for their new products. In amonopoly model, we show that while a higher tort liability always increases the incentive for product safety innovation it may increase or decrease the incentive for novelty R&D depending on the relative strength of the demand-shifting effect and cross-R&D effect identified in the model. We further extend the model to an oligopoly setting to study the effect of competition. We find that an increase in number of firms leads to lower levels of product novelty and safety. However, an increase in product substitutability may lead to non-monotonic changes in product novelty and safety. These results suggest that tort liability and competition can be substitutable orcomplementary in providing innovation incentive.
Lin Ping, doctor of University of Minnesota. He is now a professor of Department of Economics of Hong Kong Lingnan University and the department chairman. He is also a member of jury committee of Business and Economics of Hong Kong Government Research and Fund Committee, Non-Governmental Adviser of ICN of Hong Kong Competition Committee, member of Commission of Asian Competition Forum.He was appointed as the chairman of Hong Kong Economics Association (2011-2015). His major research field includes economics of competition and antitrust policy. He has published more than 40 theses on international economic magazines, including those top-level periodicals such as The Journal of Economic Theory, The Journal of Financial Economics, International Economic Review, European Economic Review, etc. He serves as the lead guest editor of the special issue of China’s Antitrust Law of American antitrust economic magazine Review of Industrial Organization. And more than 20 theses were included in treatises published by several English press including Oxford University Press. Many essays were published in Chinese top-level magazines such as Management World and China Industrial Economics.
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Edited by: Liu Huan