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We investigate manipulability in the setting of financial systems by considering two weak forms of immunity: non-manipulability via merging and nonmanipulability via splitting. Not surprisingly, non-manipulability via splitting is incompatible with some basic axioms: claim boundedness, limited...
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We address the problem of clearing mutual obligations among agents when a financial network collapses. To do so, we adopt an axiomatic approach and provide the first comprehensive characterization of the rules based on the principle of proportionality, covering the entire domain of financial...
Persistent link: https://www.econbiz.de/10014352667
When a financial network collapses, how should mutual obligations among all agents be cleared? We study this problem taking an axiomatic approach and provide the first characterization of the family of rules based on the principle of proportionality in the entire domain of financial systems. A...
Persistent link: https://www.econbiz.de/10014254737