A New Approach for Bounding Awards in Bankruptcy Problems

José M. Jiménez Gómez () and María del Carmen Marco
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José M. Jiménez Gómez: Universidad Politécnica de Cartagena
María del Carmen Marco: Universidad Politécnica de Cartagena
Authors registered in the RePEc Author Service: José-Manuel Giménez-Gómez ()

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

Abstract: The solution for the "Contested Garment Problem" proposed in the BabylonicTalmud, one of the most important sources of inspiration for solving situations where demand overcomes supply of some resources, suggests that each agent should receive at least some part of the available amount when facing these situations. Thisidea has been underlied the theoretical analysis of bankruptcy problems from its beginning (O'Neill, 1982) to present day (Dominguez and Thomsom, 2006). In this context, starting from the fact that a society establishes its own set of "Commonly Accepted Equity Principles", we propose a new award bound by providing each agent her minimum amount according to all the admissible bankruptcy rules for such a society. Moreover, we analyze the recursive application of this new bound, since it will not exhaust the resources, in general.

Keywords: Bankruptcy problems; bankruptcy rules; lower bound; recursive process. (search for similar items in EconPapers)
JEL-codes: C71 D63 D71 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2008-03
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 (7)

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Related works:
Journal Article: A new approach for bounding awards in bankruptcy problems (2014)
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