Good Faith and Game Theory

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    Abstract

    This article shows how game theory can be applied to model good faith mathematically using an example of a classic legal dispute related to rei vindicato. The issue is whether an owner has a legal right to his good if a person has bought it in good faith by using updated probabilities. The article illustrates that a rule of where good faith is irrelevant Pareto dominates a rule where good faith may protect an innocent buyer.
    Original languageEnglish
    Title of host publicationEncyclopedia of Law and Economics
    EditorsAlain Marciano, Giovanni Battista Ramello
    Number of pages5
    Place of PublicationNew York
    PublisherSpringer Science+Business Media
    Publication date7 Apr 2016
    ISBN (Print)9781461478836 , 9781461477525
    ISBN (Electronic)9781461477549
    DOIs
    Publication statusPublished - 7 Apr 2016

    Cite this

    Rose, C. (2016). Good Faith and Game Theory. In A. Marciano, & G. B. Ramello (Eds.), Encyclopedia of Law and Economics Springer Science+Business Media. https://doi.org/10.1007/978-1-4614-7883-6_52-1