A strategic approach to multiple estate division problems

Dénes Pálvölgyi, Hans Peters and Dries Vermeulen

Games and Economic Behavior, 2014, vol. 88, issue C, 135-152

Abstract: The classical bankruptcy problem is extended by assuming that there are multiple estates. In the finite estate case, the agents have homogeneous preferences per estate, which may differ across estates. In the more general infinite estate problem, players have arbitrary preferences over an interval of real numbers each of which is regarded as an estate. A strategic estate game is formulated in which each agent distributes his legal entitlement over the estates, resulting in individual claims per estate: each estate is then divided according to some allocation rule. The paper focuses on existence and on computational aspects of Nash equilibria in finite and infinite estate games, with some focus on the proportional allocation rule. For this rule, it also studies Pareto optimality and envy-freeness of equilibrium allocations.

Keywords: Bankruptcy problem; Multiple estate division; Non-cooperative estate division game (search for similar items in EconPapers)
JEL-codes: C72 D63 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:88:y:2014:i:c:p:135-152

DOI: 10.1016/j.geb.2014.09.005

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