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Sequential bankruptcy problems

Author

Listed:
  • Arantza Estévez-Fernández

    (VU Amsterdam)

  • José Manuel Giménez-Gómez

    (Universitat Rovira i Virgili)

  • María José Solís-Baltadano

    (Universitat Rovira i Virgili)

Abstract

In this paper, we analyze sequential bankruptcy problems, which generalize bankruptcy problems. They contain the problems of sharing water in a transboundary river and of allocating expedition rewards in projects. We provide three mechanisms for generalizing rules for bankruptcy problems to rules for sequential bankruptcy problems: the upwards, the downwards, and the two-steps mechanisms. Further, we characterize the upwards constrained equal awards, the upwards constrained equal losses, and the upwards proportional rules on the basis of upwards composition and upwards path independence. Moreover, we compare the three mechanisms based on inheritance of well-established properties for bankruptcy rules to the setting of sequential bankruptcy rules.

Suggested Citation

  • Arantza Estévez-Fernández & José Manuel Giménez-Gómez & María José Solís-Baltadano, 2019. "Sequential bankruptcy problems," Tinbergen Institute Discussion Papers 19-076/II, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20190076
    as

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    File URL: https://papers.tinbergen.nl/19076.pdf
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    References listed on IDEAS

    as
    1. Arantza Estévez-Fernández & Peter Borm & Herbert Hamers, 2012. "A Note On Passepartout Problems," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 1-9.
    2. Ambec, Stefan & Sprumont, Yves, 2002. "Sharing a River," Journal of Economic Theory, Elsevier, vol. 107(2), pages 453-462, December.
    3. BERGANTIÑOS, Gustavo & MORENO-TERNERO, Juan D., 2016. "A New Rule for the Problem of Sharing the Revenue from Museum Passes," LIDAM Reprints CORE 2721, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 187-210, February.
    5. Thomson, William, 2015. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: An update," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 41-59.
    6. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    7. Emiliya Lazarova & Peter Borm & Arantza Estévez-Fernández, 2016. "Transfers and exchange-stability in two-sided matching problems," Theory and Decision, Springer, vol. 81(1), pages 53-71, June.
    8. Herrero, Carmen & Villar, Antonio, 2001. "The three musketeers: four classical solutions to bankruptcy problems," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 307-328, November.
    9. Bergantiños, Gustavo & Moreno-Ternero, Juan D., 2015. "The axiomatic approach to the problem of sharing the revenue from museum passes," Games and Economic Behavior, Elsevier, vol. 89(C), pages 78-92.
    10. Balbina Casas-Mendez & Vito Fragnelli & Ignacio Garcìa-Jurado, 2014. "A survey of allocation rules for the museum pass problem," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(2), pages 191-205, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sequential bankruptcy; upwards mechanism; downwards mechanism; twosteps mechanism; constrained equal awards rule; constrained equal losses rule; proportional rule;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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