Sharing sequentially triggered losses: Automated conflict resolution through smart contracts

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Sharing sequentially triggered losses : Automated conflict resolution through smart contracts. / Gudmundsson, Jens; Hougaard, Jens Leth; Ko, Chiu Yu.

In: Management Science, Vol. 70, No. 3, 2024, p. 1773-1786.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Gudmundsson, J, Hougaard, JL & Ko, CY 2024, 'Sharing sequentially triggered losses: Automated conflict resolution through smart contracts', Management Science, vol. 70, no. 3, pp. 1773-1786. https://doi.org/10.1287/mnsc.2023.4772

APA

Gudmundsson, J., Hougaard, J. L., & Ko, C. Y. (2024). Sharing sequentially triggered losses: Automated conflict resolution through smart contracts. Management Science, 70(3), 1773-1786. https://doi.org/10.1287/mnsc.2023.4772

Vancouver

Gudmundsson J, Hougaard JL, Ko CY. Sharing sequentially triggered losses: Automated conflict resolution through smart contracts. Management Science. 2024;70(3):1773-1786. https://doi.org/10.1287/mnsc.2023.4772

Author

Gudmundsson, Jens ; Hougaard, Jens Leth ; Ko, Chiu Yu. / Sharing sequentially triggered losses : Automated conflict resolution through smart contracts. In: Management Science. 2024 ; Vol. 70, No. 3. pp. 1773-1786.

Bibtex

@article{0d7d74504ac54eed967ea14688377606,
title = "Sharing sequentially triggered losses: Automated conflict resolution through smart contracts",
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 conflict resolution.",
keywords = "sequential losses, fair allocation, smart contracts, cost allocation, FINANCIAL NETWORKS, SHAPLEY VALUE, LIABILITY, QUALITY, RESPONSIBILITY, RULES",
author = "Jens Gudmundsson and Hougaard, {Jens Leth} and Ko, {Chiu Yu}",
year = "2024",
doi = "10.1287/mnsc.2023.4772",
language = "English",
volume = "70",
pages = "1773--1786",
journal = "Management Science",
issn = "0025-1909",
publisher = "Institute for Operations Research and the Management Sciences (I N F O R M S)",
number = "3",

}

RIS

TY - JOUR

T1 - Sharing sequentially triggered losses

T2 - Automated conflict resolution through smart contracts

AU - Gudmundsson, Jens

AU - Hougaard, Jens Leth

AU - Ko, Chiu Yu

PY - 2024

Y1 - 2024

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, 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 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, 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 conflict resolution.

KW - sequential losses

KW - fair allocation

KW - smart contracts

KW - cost allocation

KW - FINANCIAL NETWORKS

KW - SHAPLEY VALUE

KW - LIABILITY

KW - QUALITY

KW - RESPONSIBILITY

KW - RULES

U2 - 10.1287/mnsc.2023.4772

DO - 10.1287/mnsc.2023.4772

M3 - Journal article

VL - 70

SP - 1773

EP - 1786

JO - Management Science

JF - Management Science

SN - 0025-1909

IS - 3

ER -

ID: 347894870