• 1. Introduction
  • 2. Legal Background and Extant Literature
  • 3. The Model
  • 3.1 Setting
  • 3.2 Conventionalized Bankruptcy Regulations
  • 4. Ex-Post Analysis
  • 4.1 First-Best
  • 4.2 Performance of Existing Rules
  • 4.3 Proposal
  • 5. Ex-Ante Analysis
  • 5.1 Setting
  • 5.2 First Best
  • 5.3 Performance of Various Rules
  • 5.4 Numerical Example
  • 6. Discussion
  • 7. Conclusion