Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2016-05-31
Number: 16-042/II
Author-Name: Takayuki Oishi
Author-Workplace-Name: Aomori Public University, Japan
Author-Name: Gerard van der Laan
Author-Workplace-Name: VU University Amsterdam, the Netherlands
Author-Name: René van den Brink
Author-Workplace-Name: VU University Amsterdam, the Netherlands
Title: An Axiomatic Analysis of Joint Liability Problems with Rooted -Tree Structure
Abstract: For joint liability problems concerning tort law, a legal compensation scheme may be based on lower and upper bounds  of compensation for injury and on case-system consistency. Introducing several properties inspired from this observation, we analyze compensation schemes axiomatically under the situation where causation of the cumulative injury appears in multiple sequences of wrongful acts. The situation underlying the model is described by a rooted-tree graph. We show that there is a unique compensation scheme that satisfies three axioms, one about lower bounds of individual compensations, one about upper bounds of individual compensations, and one about case-system consistency. This unique compensation scheme is the nucleolus of an associated liability game.
Classification-JEL: D63, K13, K49
Keywords: Liability problems, Tort law, Rooted-tree graph, Axiomatization, Nucleolus
File-Url: https://papers.tinbergen.nl/16042.pdf
File-Format: application/pdf
File-Size: 499430 bytes
Handle: RePEc:tin:wpaper:20160042