IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v70y2024i3p1773-1786.html
   My bibliography  Save this article

Sharing Sequentially Triggered Losses: Automated Conflict Resolution Through Smart Contracts

Author

Listed:
  • Jens Gudmundsson

    (Department of Food and Resource Economics, University of Copenhagen, 1958 Copenhagen, Denmark)

  • Jens Leth Hougaard

    (Department of Food and Resource Economics, University of Copenhagen, 1958 Copenhagen, Denmark)

  • Chiu Yu Ko

    (Department of Decision Sciences and Managerial Economics, Chinese University of Hong Kong, Shatin, Hong Kong)

Abstract

When actions by one agent force another to deviate from their agreements with a third, “victim” turns into “injurer” in the chain’s subsequent steps. Should the chain’s initiator be responsible only for the direct harm they cause or also bear some of the indirect losses they trigger? Through an axiomatic approach, we characterize the class of fixed-fraction rules, which strike a balance between incentives for accident prevention on the one hand and fairness in terms of how liabilities are assigned on the other. Their simple design make the rules ideal for practical implementation through smart contracts, enabling automated conflict resolution.

Suggested Citation

  • Jens Gudmundsson & Jens Leth Hougaard & Chiu Yu Ko, 2024. "Sharing Sequentially Triggered Losses: Automated Conflict Resolution Through Smart Contracts," Management Science, INFORMS, vol. 70(3), pages 1773-1786, March.
  • Handle: RePEc:inm:ormnsc:v:70:y:2024:i:3:p:1773-1786
    DOI: 10.1287/mnsc.2023.4772
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2023.4772
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mnsc.2023.4772?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:70:y:2024:i:3:p:1773-1786. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.