Abstract
The legal notion of damages requires to compare the actual value of the creditor’s assets with the hypothetical value that would have prevailed if the debtor had met his obligation. Moreover, values and causation may be uncertain. If nature’s contribution is modelled as a random move then the interaction between debtor and nature can be described in normal form which, in turn, allows to capture causality and legal damages in a consistent way. In practice, such random moves of nature are rarely observable. Yet, statistical inference may reveal sufficient information to test for causation and to estimate legal damages on average over observable events as the present paper will establish.
| Item Type: | Paper |
|---|---|
| Keywords: | estimating legal damages, liability for torts, liability for breach of contracts |
| Faculties: | Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > A5 - Unvollständige Vertragsbeziehungen und die Gestaltung von Residualrechten |
| Subjects: | 300 Social sciences > 330 Economics |
| JEL Classification: | K13, K12, D62 |
| URN: | urn:nbn:de:bvb:19-epub-13391-5 |
| Language: | English |
| Item ID: | 13391 |
| Date Deposited: | 10. Jul 2012 13:09 |
| Last Modified: | 04. Nov 2020 12:53 |
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