Sequential bankruptcy problems

A. Estevez-Fernandez, José Manuel Giménez-Gómez, María José Solís-Baltadano

Research output: Working paperAcademic

Abstract

In this paper, we analyze sequential bankruptcy problems, which generalize bankruptcy problems. They contain the problems of sharing water in a transboundary river and of allocating expedition rewards in projects. We provide three mechanisms for generalizing rules for bankruptcy problems to rules for sequential bankruptcy problems: the upwards, the downwards, and the two-steps mechanisms. Further, we characterize the upwards constrained equal awards, the upwards constrained equal losses, and the upwards proportional rules on the basis of upwards composition and upwards path independence. Moreover, we compare the three mechanisms based on inheritance of well-established properties for bankruptcy rules to the setting of sequential bankruptcy rules.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Institute
Number of pages31
Volume19-076/II
Publication statusPublished - 16 Nov 2019

Publication series

NameTinbergen Institute Discussion Paper
PublisherTinbergen Institute

Keywords

  • Sequential bankruptcy
  • upwards mechanism
  • downwards mechanism
  • two-steps mechanism
  • constrained equal awards rule
  • constrained equal losses rule
  • proportional rule

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  • Cite this

    Estevez-Fernandez, A., Giménez-Gómez, J. M., & Solís-Baltadano, M. J. (2019). Sequential bankruptcy problems. (Tinbergen Institute Discussion Paper). Amsterdam: Tinbergen Institute.