Duality in Contract and Tort
Bibliographic Data
| ID | 24046742 |
|---|---|
| Authors | Tim Friehe (0000-0002-9390-3537, Philipps University of Marburg), Joshua C Teitelbaum (0000-0002-9018-8320, Georgetown University) |
| Year | 2026 |
| Volume | 181 |
| Issue | NIX |
| Pages | 1-30 |
| Publication date | 2026-01-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Institutional and Theoretical Economics JITE (JOURNAL) |
| Journal identifiers | ISSN: 0932-4569 • E-ISSN: 1614-0559 |
| Publisher | Mohr Siebeck (PUBLISHER) |
| DOI | 10.1628/jite-2026-0021 |
| OpenAlex | W4391918751 |
| Language | DE |
| References cited | 1 |
We study situations in which a single investment serves the dual role of increasing the expected value of a contract (a reliance investment) and reducing the expected harm of a post-performance accident (a care investment). We show that failing to account for the duality of the investment leads to inefficient damages for breach of contract and inefficient standards for due care in tort. Conversely, we show that accounting for the duality yields contract damage measures and tort liability rules that provide correct incentives for efficient breach and reliance in contract and for efficient care in tort.
Business · Contract management · Contract theory · Duality (order theory) · Economics · Exclusion clause · Law and economics · Liability · Mathematical economics · Microeconomics · Political science · Politics · Privity of contract · Pure mathematics · Severability · Social contract · Tort · European and International Contract Law · Law · Law, Economics, and Judicial Systems · Legal principles and applications · Mathematics
| Citation velocity | historical |
|---|---|
| Highly cited | No |