How to share joint liability: A cooperative game approach
AbstractSharing damage that has been caused jointly by several tortfeasors is analyzed from a normative point of view. We show how damage can be apportioned on two distinct bases: causation and degree of misconduct. Our analysis uses the concept of potential damage on the basis of which we define a transferable utility game. Its core defines acceptable judgments as allocations of the total damage against which no group of tortfeasors can object. We show that weighted Shapley values define acceptable judgments and, vice versa, acceptable judgments reveal weights. Our paper illustrates how the cooperative approach may bring useful insights into legal questions. In particular, the Shapley value appears of special interest, being founded on axioms that are in line with fundamental principles of tort law.
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Bibliographic InfoArticle provided by Elsevier in its journal Mathematical Social Sciences.
Volume (Year): 66 (2013)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/505565
Other versions of this item:
- DEHEZ, Pierre & FEREY, Samuel, 2012. "How to share joint liability: a cooperative game approach," CORE Discussion Papers 2012023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
- 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
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