Claim games for estate division problems

Hans Peters, Marc Schröder and Dries Vermeulen

Games and Economic Behavior, 2019, vol. 116, issue C, 105-115

Abstract: The estate division problem considers the issue of dividing an estate when the sum of entitlements is larger than the estate. This paper studies the estate division problem from a noncooperative perspective. The integer claim game introduced by O'Neill (1982) and extended by Atlamaz et al. (2011) is generalized by specifying a sharing rule to divide every interval among the claimants. We show that for all problems for which the sum of entitlements is at most twice the estate the existence of a Nash equilibrium is guaranteed for a general class of sharing rules. Moreover, the corresponding set of equilibrium payoffs is independent of which sharing rule in the class is used. Well-known division rules that always assign a payoff vector in this set of equilibrium payoffs are the adjusted proportional rule, the random arrival rule and the Talmud rule.

Keywords: Claim games; Estate division problem; Bankruptcy problem; Adjusted proportional rule; Random arrival rule; Talmud rule (search for similar items in EconPapers)
JEL-codes: C72 D74 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825618301775
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Claim games for estate division problems (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:116:y:2019:i:c:p:105-115

DOI: 10.1016/j.geb.2018.11.002

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Catherine Liu ().