Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/220025 
Year of Publication: 
2019
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2019-076/II
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
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.
Subjects: 
Sequential bankruptcy
upwards mechanism
downwards mechanism
twosteps mechanism
constrained equal awards rule
constrained equal losses rule
proportional rule
JEL: 
D74
C79
D63
Document Type: 
Working Paper

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