A way to play bankruptcy problems
The commitment among agents has always been a difficult task, especially when they have to decide how to distribute the available amount of a scarce resource among all. On the one hand, there are a multiplicity of possible ways for assigning the available amount; and, on the other hand, each agent is going to propose that distribution which provides her the highest possible award. In this paper, with the purpose of making this agreement easier, firstly we use two different sets of basic properties, called Commonly Accepted Equity Principles, to delimit what agents can propose as reasonable allocations. Secondly, we extend the results obtained by Chun (1989) and Herrero (2003), obtaining new characterizations of old and well known bankruptcy rules. Finally, using the fact that bankruptcy problems can be analyzed from awards and losses, we define a mechanism which provides a new justification of the convex combinations of bankruptcy rules. Keywords: Bankruptcy problems, Unanimous Concessions procedure, Diminishing Claims mechanism, Pinilesâ€™ rule, Constrained Egalitarian rule. JEL classification: C71, D63, D71.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Avda. de la Universitat,1 - 43204 Reus (Tarragona)|
Phone: 977 75 98 00
Fax: 977 75 98 10
Web page: http://www.urv.cat
More information through EDIRC
References listed on IDEAS
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.:
- Antonio Villar Notario & Carmen Herrero Blanco, 2000.
"The Three Musketeers: Four Classical Solutions To Bankruptcy Problems,"
Working Papers. Serie AD
2000-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Herrero, Carmen & Villar, Antonio, 2001. "The three musketeers: four classical solutions to bankruptcy problems," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 307-328, November.
- Chun, Youngsub, 1989. "A noncooperative justification for egalitarian surplus sharing," Mathematical Social Sciences, Elsevier, vol. 17(3), pages 245-261, June.
- William Thomson & Chun-Hsien Yeh, 2006.
"Operators for the adjudication of conflicting claims,"
RCER Working Papers
531, University of Rochester - Center for Economic Research (RCER).
- Thomson, William & Yeh, Chun-Hsien, 2008. "Operators for the adjudication of conflicting claims," Journal of Economic Theory, Elsevier, vol. 143(1), pages 177-198, November.
- 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.
- Ignacio García-Jurado & Julio González-Díaz & Antonio Villar, 2006. "A Non-cooperative Approach to Bankruptcy Problems," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(3), pages 189-197, September.
- J. Arin, 2007. "Egalitarian Distributions In Coalitional Models," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 47-57.
- 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.
- Frank Cowell, 1998.
"Measurement of inequality,"
LSE Research Online Documents on Economics
2084, London School of Economics and Political Science, LSE Library.
- Josep Enric Peris Ferrando & Begoña Subiza & María del Carmen Marco, 1995. "A Mechanism For Meta-Bargaining Problems," Working Papers. Serie AD 1995-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-635, May.
- van Damme, E.E.C., 1986.
"The Nash bargaining solution is optimal,"
Other publications TiSEM
b408f4e4-5094-48a1-a02f-5, Tilburg University, School of Economics and Management.
- 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.
- 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.
- William Thomson, 2012.
"Lorenz rankings of rules for the adjudication of conflicting claims,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(3), pages 547-569, August.
- William Thomson, 2007. "Lorenz rankings of rules for the adjudication of conflicting claims," RCER Working Papers 538, University of Rochester - Center for Economic Research (RCER).
- Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
- Damme, Eric van, 1986. "The Nash bargaining solution is optimal," Journal of Economic Theory, Elsevier, vol. 38(1), pages 78-100, February.
When requesting a correction, please mention this item's handle: RePEc:urv:wpaper:2072/169781. 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: (Ariadna Casals)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.