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A strategic justification of the Talmud rule based on lower and upper bounds

Author

Listed:
  • Juan D. Moreno-Ternero

    (Department of Economics, Universidad Pablo de Olavide;)

  • Min-Hung Tsay

    (Department of Economics, National Chung Cheng University)

  • Chun-Hsien Yeh

    (Institute of Economics, Academia Sinica; Chung-Hua Institute for Economic Research)

Abstract

We follow the Nash program to provide a new strategic justification for the Talmud rule to solve bankruptcy problems. The design of our game is based on a focal characterization of the rule, obtained when combining consistency with two properties guaranteeing meaningful lower and upper bounds to all creditors.

Suggested Citation

  • Juan D. Moreno-Ternero & Min-Hung Tsay & Chun-Hsien Yeh, 2020. "A strategic justification of the Talmud rule based on lower and upper bounds," Working Papers 20.02, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:20.02
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    References listed on IDEAS

    as
    1. 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.
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    Citations

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    Cited by:

    1. Makoto Hagiwara & Shunsuke Hanato, 2021. "A strategic justification of the constrained equal awards rule through a procedurally fair multilateral bargaining game," Theory and Decision, Springer, vol. 90(2), pages 233-243, March.
    2. Roberto Serrano, 2020. "Sixty-Seven Years of the Nash Program: Time for Retirement?," Working Papers 2020-20, Brown University, Department of Economics.
    3. David Cerezo S'anchez, 2021. "JUBILEE: Secure Debt Relief and Forgiveness," Papers 2109.07267, arXiv.org.
    4. Juan D. Moreno‐Ternero & Min‐Hung Tsay & Chun‐Hsien Yeh, 2022. "Strategic justifications of the TAL family of rules for bankruptcy problems," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 92-102, March.
    5. Roberto Serrano, 2021. "Sixty-seven years of the Nash program: time for retirement?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 35-48, March.

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    More about this item

    Keywords

    Nash program; strategic justification; consistency; lower bounds; upper bounds; Talmud rule;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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