A proportional approach to bankruptcy. Problems with a guaranteed minimum
In a distribution problem, and specifically in bankruptcy issues, the Proportional (P) and theEgalitarian (EA) divisions are two of the most popular ways to resolve the conflict. TheConstrained Equal Awards rule (CEA) is introduced in bankruptcy literature to ensure that noagent receives more than her claim, a problem that can arise when using the egalitarian division.We propose an alternative modification, by using a convex combination of P and EA. Therecursive application of this new rule finishes at the CEA rule. Our proposal ensures a minimumamount to each agent, and distributes the remaining estate in a proportional way.
|Date of creation:||Apr 2012|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA|
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
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.:
- 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.
- 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).
- Diego Dominguez & William Thomson, 2006. "A new solution to the problem of adjudicating conflicting claims," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(2), pages 283-307, 06.
- 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.
- Dagan, N. & Serrano, R. & Volij, O.C., 1994.
"A Non-Cooperative View of Consistent Bankruptcy Rules,"
1994-11, Tilburg University, Center for Economic Research.
- 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.
- Nir Dagan & Roberto Serrano & Oscar Volij, 1997. "A Noncooperative View of Consistent Bankruptcy Rules," Economic theory and game theory 005, Nir Dagan.
- Volij, Oscar & Dagan, Nir & Serrano, Roberto, 1997. "A Non-Cooperative View of Consistent Bankruptcy Rules," Staff General Research Papers Archive 5130, Iowa State University, Department of Economics.
- 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.
- Kristof Bosmans & Luc Lauwers, 2011.
"Lorenz comparisons of nine rules for the adjudication of conflicting claims,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 40(4), pages 791-807, November.
- Kristof Bosmans & Luc Lauwers, 2007. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," Working Papers Department of Economics ces0705, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Carmen Herrero & Antonio Villar, 2002. "Sustainability in bankruptcy problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 10(2), pages 261-273, December.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2012-11. 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: (Departamento de Edición)
If references are entirely missing, you can add them using this form.