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Encyclopedia of Law and Economics pp 987–990Cite as

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.

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Authors and Affiliations

  1. Copenhagen Business School, Copenhagen, Denmark

    Caspar Rose

Authors
  1. Caspar Rose
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Correspondence to Caspar Rose .

Editor information

Editors and Affiliations

  1. MRE and University of Montpellier, Montpellier, France

    Alain Marciano

  2. Faculté d’Economie, Université de Montpellier and LAMETA-UMR CNRS, Montpellier, France

    Alain Marciano

  3. DiGSPES, University of Eastern Piedmont, Alessandria, Italy

    Giovanni Battista Ramello

  4. IEL, Torino, Italy

    Giovanni Battista Ramello

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Rose, C. (2019). Good Faith and Game Theory. In: Marciano, A., Ramello, G.B. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7753-2_52

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