ABSTRACT
This paper deals with tort relationships where some parties are directly involved, others indirectly. Only directly involved parties choose actions relevant for the case. The desired outcome reflects concerns also of indirectly affected parties and, for that reason, need not maximize welfare of the directly involved parties. Damages rules compensatory relative to such a desired outcome may not deter undesired actions. Rather, to ensure that the desired outcome is a Nash equilibrium, defendants have to surrender enrichments when they exceed harm caused to others. For the desired outcome to result under sequential action choice, harm and enrichments must be specified under the hypothesis that actors at subsequent stages keep to the desired outcome even if, eventually, they do not.
Schweizer, Urs, Damages Rules Implementing Desired Outcomes. Posted to SSRN 5 October 2026.
Leave a Reply