Sharing sequentially triggered losses: Automatic conflict resolution through smart contracts
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Sharing sequentially triggered losses : Automatic conflict resolution through smart contracts. / Gudmundsson, Jens; Hougaard, Jens Leth; Ko, Chiu Yu.
Department of Food and Resource Economics, University of Copenhagen, 2020.Research output: Working paper › Research
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TY - UNPB
T1 - Sharing sequentially triggered losses
T2 - Automatic conflict resolution through smart contracts
AU - Gudmundsson, Jens
AU - Hougaard, Jens Leth
AU - Ko, Chiu Yu
PY - 2020
Y1 - 2020
N2 - 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, wecharacterize 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 conflict resolution.
AB - 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, wecharacterize 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 conflict resolution.
M3 - Working paper
T3 - IFRO Working Paper
BT - Sharing sequentially triggered losses
PB - Department of Food and Resource Economics, University of Copenhagen
ER -
ID: 241943024