# Characterizing NTU-bankruptcy rules using bargaining axioms

Working paper

Issue number:

RM/18/006

Series:

GSBE Research Memoranda

Publisher:

GSBE

Year:

2018

This paper takes an axiomatic bargaining approach to bankruptcy problems with nontransferable utility by characterizing bankruptcy rules in terms of properties from bargaining theory. In particular, we derive new axiomatic characterizations of the proportional rule, the truncated proportional rule, and the constrained relative equal awards rule using properties which concern changes in the estate or the claims.