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Axiomatic analysis of liability problems with rooted-tree networks in tort law

Author

Listed:
  • Takayuki Oishi

    (Meiji Gakuin University)

  • Gerard van der Laan

    (VU University)

  • René van den Brink

    (VU University)

Abstract

We analyze a legal situation in which a plaintiff suffers the total damage of the cumulative injury that is caused by multiple sequences of tortfeasors’ wrongful acts. This liability situation is modeled by a tuple consisting of a rooted-tree network of causation of the injury, and a list of marginal damages. The problem is to determine how to share the total damage among the tortfeasors in such situations. A rule is a mapping that associates with each liability problem a list of payments to be made by the tortfeasors to pay for the plaintiff’s harm. We axiomatize two rules that are obtained as the Nucleolus and the Shapley value, respectively, of a coalitional game with tortfeasors as players. The axioms involved in these axiomatizations are derived from the legal concept of tort law.

Suggested Citation

  • Takayuki Oishi & Gerard van der Laan & René van den Brink, 2023. "Axiomatic analysis of liability problems with rooted-tree networks in tort law," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 229-258, January.
    • Handle: RePEc:spr:joecth:v:75:y:2023:i:1:d:10.1007_s00199-021-01399-w
    DOI: 10.1007/s00199-021-01399-w
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    More about this item

    Keywords

    Liability problems; Rooted-tree networks; Tort law; Axiomatizations; Nucleolus; Shapley value;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other

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