STRONG COMPOSITION DOWN. CHARACTERIZATIONS OF NEW AND CLASSICAL BANKRUPTCY RULES

Ricardo Martínez ()
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Ricardo Martínez: Brown University
Authors registered in the RePEc Author Service: Ricardo Martinez () and Ricardo Martinez

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

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. We call to that family the backbone family, which is a generalization of the weighted constrained equal awards rules. In addition, once strong composition down is combined with homogeneity only the weighted constrained equal awards rules survive. We also prove that the constrained equal awards rule is the unique rules satisfying strong composition down and equal treatment of equals together.

Keywords: strong composition down; backbone rules; constrained equal awards rule; weighted constrained equal awards rules (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2007-10
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http://www.ivie.es/downloads/docs/wpasad/wpasad-2007-20.pdf Fisrt version / Primera version, 2007 (application/pdf)

Related works:
Working Paper: Strong composition down. Characterizations of new and classical bankruptcy rules (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2007-20

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