We examine training and recruitment policies in a two period model that nests two forms of production, quot;routinequot; work where ability and effort are substitutes and quot;creativequot; work where they are complements. Alternative ways of improving average ability have opposite implications...

The Tort system and especially Product Liability is a socially costly tool to provide manufacturers with incentives for safety. Recently, it has been argued that market reputation could, to a significant extent, constitute a cheaper alternative to Product Liability. Our paper departs from the...