Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267850 
Year of Publication: 
2022
Series/Report no.: 
IFRO Working Paper No. 2020/05
Version Description: 
Revised December 2022
Publisher: 
University of Copenhagen, Department of Food and Resource Economics (IFRO), Copenhagen
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 con ict resolution.
Subjects: 
Sequential losses
fair allocation
smart contracts
cost allocation
JEL: 
K12
C7
D6
Document Type: 
Working Paper

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