The Pure Theory of Multilateral Obligations - 10.1628/0932456054193577 - Mohr Siebeck
Economics

Urs Schweizer

The Pure Theory of Multilateral Obligations

Volume 161 () / Issue 2, pp. 239-254 (16)

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This paper develops the pure theory of damage rules that internalize external effects in a multiparty setting. Desirable properties in terms of efficiency are shown to follow from a simple saddle-point property, which, in turn, is implied by general principles of liability. The legal practice of granting compensation of negative but not positive effects turns out to be consistent with the saddle-point property. The sharing of damage payments among several injurers is not restricted by efficiency considerations. For sequences of events that follow an injury, the pure theory would grant recovery even to parties that suffer at the far end of the sequence.
Authors/Editors

Urs Schweizer Geboren 1947; Studium der Mathematik; 1972 Promotion; 1980 Habilitation; seit 1984 Professor für Wirtschaftliche Staatswissenschaften insbesondere Wirtschaftspolitik an der Universität Bonn; 1998–2014 Gründungssprecher der BGSE (Bonn Graduate School of Economics).