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A Non-Cooperative View of Consistent Bankruptcy Rules

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  • Dagan, N.
  • Serrano, R.
  • Volij, O.C.

    (Tilburg University, Center For Economic Research)

Abstract

We introduce a game form that captures a noncooperative dimension of the consistency property of bankruptcy rules. Any consistent and monotone rule is fully characterized by a bilateral principle and consistency. Like the consistency axiom, our game form, together with a bilateral principle, yields the corresponding consistent bankruptcy rule as a result of a unique outcome of Nash equilibria. The result holds for a large class of consistent and monotone rules, including the Constrained Equal Award, the Propositional Rule, and many other well known rules. Moreover, all of the subgame perfect equilibria are coalition-proof in the associated game in strategic form.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dagan, N. & Serrano, R. & Volij, O.C., 1994. "A Non-Cooperative View of Consistent Bankruptcy Rules," Discussion Paper 1994-11, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:c8f9a0f9-e85c-4e61-837f-a32ae5a0a071
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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