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Protective properties and the constrained equal awards rule for claims problems

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Author Info
Chun-Hsien Yeh

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Abstract

We investigate the implications of two properties, sustainability and exemption, when imposed separately in conjunction with other basic properties for the resolution of conflicting claims. Under the protective properties, agents with sufficiently small claims in relation to the others are fully reimbursed. We base three characterizations of the constrained equal awards rule on the properties. Namely, (1) the constrained equal awards rule is the only rule satisfying sustainability and claims monotonicity, (2) it is the only rule satisfying sustainability and super-modularity, and (3) it is the only rule satisfying exemption, order preservation and consistency. Then, we extend the notions of the protective properties to groups of agents, and show that no rule satisfies any of these extensions.

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Paper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 463.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:feam04:463

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Related research
Keywords: claims problem; sustainability; exemption; constrained equal awards rule;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances

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References listed on IDEAS
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  1. Dagan, Nir & Serrano, Roberto & Volij, Oscar, 1997. "A Noncooperative View of Consistent Bankruptcy Rules," Games and Economic Behavior, Elsevier, vol. 18(1), pages 55-72, January. [Downloadable!] (restricted)
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  2. Carmen Herrero & Antonio Villar, 2002. "Sustainability in bankruptcy problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 10(2), pages 261-273, December. [Downloadable!] (restricted)
  3. Thomson, W., 1996. "Consistent Allocation Rules," RCER Working Papers 418, University of Rochester - Center for Economic Research (RCER).
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