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Liability Situations with Successive Tortfeasors

In: Advances in Collective Decision Making

Author

Listed:
  • Frank Huettner

    (Sungkyunkwan University)

  • Dominik Karos

    (Center for Mathematical Economics)

Abstract

Given a tort that involves several tortfeasors, an allocation scheme attributes to each of them that part of the damage that reflects their responsibility. We consider successive torts—i.e., torts that involve a causality chain—and show that simple and intuitive principles, which are well-known in the law of tort, uniquely define an allocation scheme. We show that this scheme incentivizes agents to exhibit a certain level of care, creating an efficient prevention of accidents. We further describe the unique rule according to which a liability situation has to be adjusted after a partial settlement such that incentives to settle early are created.

Suggested Citation

  • Frank Huettner & Dominik Karos, 2023. "Liability Situations with Successive Tortfeasors," Studies in Choice and Welfare, in: Sascha Kurz & Nicola Maaser & Alexander Mayer (ed.), Advances in Collective Decision Making, pages 191-204, Springer.
    • Handle: RePEc:spr:stcchp:978-3-031-21696-1_12
    DOI: 10.1007/978-3-031-21696-1_12
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