New Characterizations of Old Bankruptcy Rules

Authors: 
Nir Dagan
Abstract: 

This paper presents axiomatic characterizations of two bankruptcy rules discussed in Jewish legal literature: the Constrained Equal Awards rule and the Contested Garment principle (the latter is defined only for two-creditor problems). A major property in these characterizations is independence of irrelevant claims, which requires that if an individual claim exceeds the total to be allocated it should be considered irrelevant.

Date: 
January, 1994
Published in: 
Social Choice and Welfare 13 (1996), 51-59
Number: 
44