Advanced Search
MyIDEAS: Login

On Solving Liability Problems

Contents:

Author Info

  • Groote Schaarsberg, M.
  • Reijnierse, J.H.
  • Borm, P.E.M.

    (Tilburg University, Center for Economic Research)

Abstract

Abstract: This paper introduces liability problems, as a generalization of bankruptcy problems, where every agent not only owns a certain amount of cash money, but also has outstanding claims and debts towards the other agents. Assuming that the agents want to cash their claims, we will analyze liability rules which prescribe how the total available amount of cash should be allocated among the agents. In particular we focus on bankruptcy rule based bilateral transfer schemes. Existence of these schemes is established and it is seen that within the class of hierarchical liability problems, such a transfer scheme is unique. Although in general a bankruptcy rule based bilateral transfer scheme need not be unique, we show that the resulting bankruptcy rule based transfer allocation is. This leads to the definition of bankruptcy rule based liability rules. For hierarchical liability problems an alternative characterization of such liability rules is provided. Moreover it is shown that the axiomatic characterization of the Aumann-Maschler bankruptcy rule on the basis of consistency can be extended to the corresponding liability rule. We conclude with a discussion of alternative approaches to solve liability problems.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://arno.uvt.nl/show.cgi?fid=130276
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Richard Broekman)
Download Restriction: no

Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2013-033.

as in new window
Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:dgr:kubcen:2013033

Contact details of provider:
Web page: http://center.uvt.nl

Related research

Keywords: Liability problems; bankruptcy;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Helga Habis & P. Jean-Jacques Herings, 2012. "Stochastic Bankruptcy Games," IEHAS Discussion Papers 1205, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  2. Pálvölgyi Dénes & Peters Hans & Vermeulen Dries, 2010. "A strategic approach to estate division problems with non-homogenous preferences," Research Memorandum 036, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  3. Calleja, Pedro & Borm, Peter & Hendrickx, Ruud, 2005. "Multi-issue allocation situations," European Journal of Operational Research, Elsevier, vol. 164(3), pages 730-747, August.
  4. Chun, Youngsub, 1988. "The proportional solution for rights problems," Mathematical Social Sciences, Elsevier, vol. 15(3), pages 231-246, June.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dgr:kubcen:2013033. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.