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Equal Awards versus Equal Losses in Bankruptcy Problems

Author

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  • Alcalde, José

    (University of Alicante, D. Quantitative Methods and Economic Theory)

  • Peris, Josep E.

    (University of Alicante, D. Quantitative Methods and Economic Theory)

Abstract

The Constrained Equal Awards and Equal Losses rules are traditional ways to solve bankruptcy problems. These rules are characterized by two parameters α and β that represent, respectively, the maximum amount a claimant receives, or the maximum amount a claimant loses. Moreover, these rules define a partition in the set of agents: those who are equally rationed, and those sustaining a lower rationing (because their maximal award and maximal loss cannot exceed their claim). We investigate the relationship between α and β, and the corresponding partitions they originate in the set of agents, by using a characteristic τ measuring the relative degree of conflict.

Suggested Citation

  • Alcalde, José & Peris, Josep E., 2017. "Equal Awards versus Equal Losses in Bankruptcy Problems," QM&ET Working Papers 17-2, University of Alicante, D. Quantitative Methods and Economic Theory.
    • Handle: RePEc:ris:qmetal:2017_002
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    References listed on IDEAS

    as
    1. 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.
    2. Giménez-Gómez, José-Manuel & Peris, Josep E., 2014. "A proportional approach to claims problems with a guaranteed minimum," European Journal of Operational Research, Elsevier, vol. 232(1), pages 109-116.
    3. 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.
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    Citations

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    Cited by:

    1. Alcalde, José & Peris, Josep E., 2022. "Mixing solutions for claims problems," Mathematical Social Sciences, Elsevier, vol. 115(C), pages 78-87.
    2. José, Alcalde & Josep E., Peris, 2017. "Sharing Costs and the Compromise Solution," QM&ET Working Papers 17-3, University of Alicante, D. Quantitative Methods and Economic Theory.
    3. José, Alcalde & Peris, Josep E., 2020. "Mixing Solutions in Claims Problems," QM&ET Working Papers 20-3, University of Alicante, D. Quantitative Methods and Economic Theory.

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    More about this item

    Keywords

    Bankruptcy Problem; Relative Degree of Conflict;

    JEL classification:

    • 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

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