An Axiomatic Analysis of Joint Liability Problems with Rooted ― Tree Structure

Tinbergen Institute Discussion Paper 16-042/II

61 Pages Posted: 1 Jun 2016

See all articles by Takayuki Oishi

Takayuki Oishi

Meisei University - School of Economics

Gerard van der Laan

Vrije Universiteit Amsterdam, School of Business and Economics

Rene van den Brink

Vrije Universiteit Amsterdam, School of Business and Economics

Date Written: May 25, 2016

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.

Keywords: Liability Problems, Tort Law, Rooted-Tree Graph, Axiomatization, Nucleolus

JEL Classification: D63, K13, K49

Suggested Citation

Oishi, Takayuki and van der Laan, Gerard and van den Brink, Rene, An Axiomatic Analysis of Joint Liability Problems with Rooted ― Tree Structure (May 25, 2016). Tinbergen Institute Discussion Paper 16-042/II, Available at SSRN: https://ssrn.com/abstract=2787032 or http://dx.doi.org/10.2139/ssrn.2787032

Takayuki Oishi (Contact Author)

Meisei University - School of Economics ( email )

2-1-1, Hodokubo
Hino
Tokyo, 191-8506
Japan

Gerard Van der Laan

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Rene Van den Brink

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

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