SMU SOE Seminar (April 13, 2023): Sharing Sequentially Triggered Losses: Automated Conflict Resolution through Smart Contracts

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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 JEL Codes: K12, C7, D6 Click here to view the CV. Click here to view the paper.
		PRESENTER Jens Hougaard University of Copenhagen
		RESEARCH FIELDS Market Design Fair Allocation Network Economics Game Theory Efficiency Analysis
		DATE: 13 April 2023 (Thursday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903