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ARBITRATION, INDIVISIBLE ASSETS AND THE POSSIBILITY OF MALICE
Author(s) -
Guha Brishti
Publication year - 2019
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12182
Subject(s) - malice , plaintiff , valuation (finance) , arbitration , law and economics , economics , law , political science , accounting
Many real‐life contexts involve allocating an indivisible prize between two claimants. One (or both) claimants may derive ‘malice utility’ from depriving the other claimant. I study an arbitrator who does not know if malice is involved in a particular dispute, but wishes the prize to be allocated to the party with the higher intrinsic valuation for it and discuss two simple mechanisms that achieve his purpose regardless of whether malice is actually present. I examine several extensions.