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NTU-Bankruptcy Problems : Consistency and the Relative Adjustment Principle

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  • Dietzenbacher, Bas

    (Tilburg University, Center For Economic Research)

  • Borm, Peter

    (Tilburg University, Center For Economic Research)

  • Estevez Fernandez, M.A.

    (Tilburg University, Center For Economic Research)

Abstract

This paper axiomatically studies bankruptcy problems with nontransferable utility by focusing on generalizations of consistency and the contested garment principle. On the one hand, we discuss several consistency notions and introduce the class of parametric bankruptcy rules which contains the proportional rule, the constrained relative equal awards rule, and the constrained relative equal losses rule. On the other hand, we introduce the class of adjusted bankruptcy rules and characterize the relative adjustment principle by truncation invariance, minimal rights first, and a weak form of relative symmetry.
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Suggested Citation

  • Dietzenbacher, Bas & Borm, Peter & Estevez Fernandez, M.A., 2017. "NTU-Bankruptcy Problems : Consistency and the Relative Adjustment Principle," Discussion Paper 2017-044, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:f023d53e-b84f-4520-aa5e-9c9ebc8e7de5
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    References listed on IDEAS

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    9. ,, 2001. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 17(5), pages 1025-1031, October.
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    19. B. Dietzenbacher & A. Estévez-Fernández & P. Borm & R. Hendrickx, 2021. "Proportionality, equality, and duality in bankruptcy problems with nontransferable utility," Annals of Operations Research, Springer, vol. 301(1), pages 65-80, June.
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    Cited by:

    1. Eun Jeong Heo & Jinhyuk Lee, 2023. "Allocating $$\hbox {CO}_2$$ CO 2 emissions: a dynamic claims problem," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 163-186, February.
    2. Gong, Doudou & Dietzenbacher, Bas & Peters, Hans, 2022. "A random arrival rule for NTU-bankruptcy problems," Economics Letters, Elsevier, vol. 218(C).
    3. Csóka, Péter & Illés, Ferenc & Solymosi, Tamás, 2022. "On the Shapley value of liability games," European Journal of Operational Research, Elsevier, vol. 300(1), pages 378-386.
    4. Dietzenbacher, Bas, 2018. "Bankruptcy games with nontransferable utility," Mathematical Social Sciences, Elsevier, vol. 92(C), pages 16-21.
    5. B. Dietzenbacher & A. Estévez-Fernández & P. Borm & R. Hendrickx, 2021. "Proportionality, equality, and duality in bankruptcy problems with nontransferable utility," Annals of Operations Research, Springer, vol. 301(1), pages 65-80, June.
    6. Bas Dietzenbacher & Hans Peters, 2022. "Characterizing NTU-bankruptcy rules using bargaining axioms," Annals of Operations Research, Springer, vol. 318(2), pages 871-888, November.
    7. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.
    8. Bas Dietzenbacher, 2023. "Generalizing the constrained equal awards rule," Theory and Decision, Springer, vol. 95(1), pages 131-150, July.

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    More about this item

    Keywords

    NTU-bankruptcy problem; axiomatic analysis; consistency; parametric bankruptcy rules; adjusted bankruptcy rules; relatived adjustment principle;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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