this interpretation of the ethics of responsibility and the ethics of compensation within a broad class of economic … ethics of compensation, and we report an impossibility result that clarifies the source of this conflict. …

What is the appropriate lump-sum compensation for loss of work income in personal injury cases? Since generally future … work income is not known with certainty, compensation for its loss must be based on statistical considerations. Typically … economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …

Courts typically base compensation for loss of income in personal injury cases on either mean or median work income …-whole (full) compensation and mean and median work incomes. Given that consumption uncertainty associated with compensation … generally exceeds that associated with work income, we show that the appropriate make-whole compensation exceeds mean (and …