Delayed Compensation for Lost Income.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1993
Volume: 7
Issue: 3
Pages: 301-10

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Lengthy legal proceedings are often required before an individual who has unjustly lost income is compensated. The utility loss while waiting in straitened circumstances exceeds the utility gain from later compensation if compensation is merely monies lost plus interest. The excess loss will be larger the more averse the individual is to intertemporal variation in consumption, the less complete and perfect the markets for borrowing and trading contingent claims, and the less the certainty about whether an award will be made. To make an injured individual whole, the focus should be on compensating not for loss of discounted income, but for loss of utility. Copyright 1993 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:7:y:1993:i:3:p:301-10
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29