What is Regulation

Optimal mode of risk control must be chosen for each case using comparative analysis. This chapter compares the strict liability and regulatory safety standards for controlling content-related risk of harm provided by family leader's minor. The model in this chapter is based on Miceli et al. (2013)'s model regarding product-related risks adapted into content-related risks of harm through new media tools by family leader's minor. Under certain assumptions, when end users perceive the risk accurately, strict liability and optimal regulatory safety standard achieve the first-best outcome. On the other hand, when end users perceive the risk inaccurately, strict liability is preferred over regulation. Therefore, strict liability of family leader's rule (art.369 of Turkish Civil Code No. 4721) is efficient, because it achieves socially optimal outcome (first-best outcome) independent from the end users' perception of risk under the assumption of susceptibility to the same harm.