Strong Composition Down. Characterizations Of New And Classical Bankruptcy Rules
AbstractThis paper is devoted to the study of claims problems. We identify the family of rules that satisfy strong composition down (robustness with respect to reevaluations of the estate) and consistency (robustness with respect to changes in the set of agents) together. We call to that family the backbone family, which is a generalization of the weighted constrained equal awards rules. In addition, once strong composition down is combined with homogeneity only the weighted constrained equal awards rules survive. We also prove that the constrained equal awards rule is the unique rules satisfying strong composition down and equal treatment of equals together.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2007-20.
Length: 15 pages
Date of creation: Oct 2007
Date of revision:
Publication status: Published by Ivie
strong composition down; backbone rules; constrained equal awards rule; weighted constrained equal awards rules;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-13 (All new papers)
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