A strategic justification of the constrained equal awards rule through a procedurally fair multilateral bargaining game

In a claims problem, we propose a new game for strategic justification of the constrained equal awards rule. In contrast to Li and Ju (Mimeo, 2016) and Tsay and Yeh (Games and Economic Behavior, 113, 515-532, 2019), our game is "procedurally fair" (claimants are treated equally) and "multilateral" (all claimants negotiate simultaneously). In addition, even if claimants cannot reach an agreement in any period, they can renegotiate in the next period. We show that for eachclaims problem, the awards vector chosen by the constrained equal awards rule is the unique subgame perfect equilibrium outcome of the game