Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/226384
Authors: 
Gudmundsson, Jens
Hougaard, Jens Leth
Ko, Chiu Yu
Year of Publication: 
2020
Series/Report no.: 
IFRO Working Paper No. 2020/05
Abstract: 
When losses caused by one agent onto another triggers losses to a third, "victim" turns into "injurer" in the chain's subsequent steps. Should agents be responsible for the direct loss they cause or also bear some of the indirect losses they trigger? Through an axiomatic approach, we characterize the fixed-fraction rules, holding each agent accountable for a fraction of the direct harm she causes while the chain's initiator is liable for the residual. We also examine contested individual losses. Extending on the well-known principle of equalizing losses, we show that losses can be distributed equidistant to the agents' ideal allocations.
Subjects: 
Sequential losses
Strict liability
Ordered liability
Fair allocation
Cost allocation
JEL: 
K12
C7
D6
Document Type: 
Working Paper

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