BANKRUPTCY GAMES AND THE IBN EZRA'S PROPOSAL

Jose Alcalde, Jose Silva and María del Carmen Marco
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María del Carmen Marco: Universidad Politécnica de Cartagena

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper follows the interpretation of the bankruptcy problems in terms of TU games given in O'Neill (1982). In this context we propose the analysis of the Transition Game associated to each bankruptcy problem. We explore an old solution described by Ibn Ezra in the XII century. Firstly, we study the extension of the Ibn Ezra's proposal by O'Neill (1982), the Minimal Overlap solution. We provide a characterization of this value and show that it can be understood as the composition of the Ibn Ezra solution and the Constrained Equal Loss rule. Secondly, we introduce a new way of extending the Ibn Ezra's proposal, the Generalized Ibn Ezra solution, by imposing that the general distribution principle in which is inspired remains fixed. The characterization of our proposal clarifies the analogies and differences between the two ways of generalizing the Ibn Ezra's proposal.

Keywords: Bankruptcy Problems; Cooperative Games; Ibn Ezra's proposal; Minimal Overlap solution. (search for similar items in EconPapers)
JEL-codes: C71 D63 D71 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2002-12
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http://www.ivie.es/downloads/docs/wpasad/wpasad-2002-28.pdf Fisrt version / Primera version, 2002 (application/pdf)

Related works:
Journal Article: Bankruptcy games and the Ibn Ezra’s proposal (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2002-28

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