Strong composition down. Characterizations of new and classical bankruptcy rules

Ricardo Martinez ()
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Ricardo Martinez: Department of Economic Theory, Universidad de Málaga
Authors registered in the RePEc Author Service: Ricardo Martinez and Ricardo Martinez ()

No 2009-4, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: This paper is devoted to the study of claims problems. We identify the family of rules that satisfy strong composition down (robustness with respect to reevaluations of the estate) and consistency (robustness with respect to changes in the set of agents) together. Such a family is the Þxed path rules, which is a generalization of the weighted constrained equal awards rules. In addition, once strong composition down and consistency are combined with homogeneity only the weighted constrained equal awards rules survive. We also prove that the constrained equal awards rule is the only rule that satisÞes strong composition down, consistency and equal treatment of equals together.

Keywords: strong composition down; Þxed path rules; constrained equal awards rule; weighted constrained equal awards rules (search for similar items in EconPapers)
JEL-codes: D63 D70 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2009-06
New Economics Papers: this item is included in nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://theeconomics.uma.es/malagawpseries/Papers/METCwp2009-4.pdf First version, 2009 (application/pdf)

Related works:
Working Paper: STRONG COMPOSITION DOWN. CHARACTERIZATIONS OF NEW AND CLASSICAL BANKRUPTCY RULES (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2009-4

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