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.