A Proportional Approach to Bankruptcy Problems with a guaranteed minimum
In a distribution problem, and speci fically 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 fication, by using a convex combination of P and EA. The recursive application of this new rule fi nishes at the CEA rule. Our solution concept ensures a minimum amount to each agent, and distributes the remaining estate in a proportional way.
|Date of creation:||22 Mar 2012|
|Contact details of provider:|| Postal: +34 965 90 36 70|
Phone: +34 965 90 36 70
Fax: +34 965 90 97 89
Web page: http://web.ua.es/es/dmcte
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.:
- 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.
- 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).
- 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.C., 1994. "A Non-Cooperative View of Consistent Bankruptcy Rules," Discussion Paper 1994-11, Tilburg University, Center for Economic Research.
- 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.
- 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.
- 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).
- 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.
- 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.
- 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.
- 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. Full references (including those not matched with items on IDEAS)