A Proportional Approach to Bankruptcy Problems with a guaranteed minimum
AbstractIn a distribution problem, and specfii cally in bankruptcy issues, the Proportional (P) and the Egalitarian (EA) divisions are two of the most popular ways to resolve the conflict. The Constrained Equal Awards rule (CEA) is introduced in bankruptcy literature to ensure that no agent receives more than her claim, a problem that can arise when using the egalitarian division. We propose an alternative modi cation, by using a convex combination of P and EA. The recursive application of this new rule finishes at the CEA rule. Our solution concept ensures a minimum amount to each agent, and distributes the remaining estate in a proportional way. Keywords: Bankruptcy problems, Proportional rule, Equal Awards, Convex combination of rules, Lorenz dominance. JEL classi fication: C71, D63, D71.
Download InfoIf 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.
Bibliographic InfoPaper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/182645.
Date of creation: 2012
Date of revision:
Fallida; Jocs cooperatius; Economia del benestar; Elecció social; 33 - Economia;
Other versions of this item:
- Peris, Josep E. & Jiménez-Gómez, José M., 2012. "A Proportional Approach to Bankruptcy Problems with a guaranteed minimum," QM&ET Working Papers 12-7, Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica.
- José M. Jiménez Gómez & Josep Enric Peris Ferrando, 2012. "A proportional approach to bankruptcy. Problems with a guaranteed minimum," Working Papers. Serie AD 2012-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
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.:
- Kristof Bosmans & Luc Lauwers, 2011.
"Lorenz comparisons of nine rules for the adjudication of conflicting claims,"
International Journal of Game Theory,
Springer, vol. 40(4), pages 791-807, November.
- Kristof Bosmans & Luc Lauwers, 2007. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," Center for Economic Studies - Discussion papers ces0705, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Diego Dominguez & William Thomson, 2006.
"A new solution to the problem of adjudicating conflicting claims,"
Springer, vol. 28(2), pages 283-307, 06.
- Diego Dominguez & William Thomson, 2004. "A New Solution to the Problem of Adjudicating Conflicting Claims," RCER Working Papers 511, University of Rochester - Center for Economic Research (RCER).
- Nir Dagan & Roberto Serrano & Oscar Volij, 1997.
"A Noncooperative View of Consistent Bankruptcy Rules,"
Economic theory and game theory
005, Nir Dagan.
- 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.
- Dagan, N. & Serrano, R. & Volij, O., 1994. "A Non-Cooperative View of Consistent Bankruptcy Rules," Discussion Paper 1994-11, Tilburg University, Center for Economic Research.
- Volij, Oscar & Dagan, Nir & Serrano, Roberto, 1997. "A Non-Cooperative View of Consistent Bankruptcy Rules," Staff General Research Papers 5130, Iowa State University, Department of Economics.
- Voorneveld, M. & Tijs, S.H. & Grahn, S., 2003.
"Monotonic allocation schemes in clan games,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-91573, Tilburg University.
- Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
- 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.
- Juan de Dios Moreno Ternero & Antonio Villar Notario, 2003.
"The Talmud Rule And The Securement Of Agents? Awards,"
Working Papers. Serie AD
2003-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Moreno-Ternero, Juan D. & Villar, Antonio, 2004. "The Talmud rule and the securement of agents' awards," Mathematical Social Sciences, Elsevier, vol. 47(2), pages 245-257, March.
- 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.
- Subiza, Begoña & Silva-Reus, José Ángel & Peris, Josep E., 2013. "Cost sharing solutions de fined by non-negative eigenvectors," QM&ET Working Papers 13-6, Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica.
- William Thomson, 2013. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: an update," RCER Working Papers 578, University of Rochester - Center for Economic Research (RCER).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ariadna Casals).
If references are entirely missing, you can add them using this form.