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The concede-and-divide rule is a basic solution for bankruptcy problems with two claimants. An extension of the concede-and-divide rule to bankruptcy problems with more than two claimants is provided.This extension not only uses the concede-and-divide principle in its procedural definition, but...
Persistent link: https://www.econbiz.de/10014066738
In a Case Law regime Courts have more flexibility than in a Statute Law regime. Since Statutes are inevitably incomplete, this confers an advantage to the Statute Law regime over the Case Law one. However, all Courts rule ex-post, after most economic decisions are already taken. Therefore, the...
Persistent link: https://www.econbiz.de/10013159961
Road cycling races, although won by individual riders, are a competition of teams. Riding behind other riders significantly reduces the energy required to hold a given speed. These races thus provide free-riding incentives. We introduce a game-theoretic framework of this strategic setup to...
Persistent link: https://www.econbiz.de/10014578017
We find an economic rationale for the common sense answer to the question in our title - courts should not always enforce what the contracting parties write. We describe and analyze a contractual environment that allows a role for an active court. An active court can improve on the outcome that...
Persistent link: https://www.econbiz.de/10012732731
In a Case Law regime Courts have more flexibility than in a Statute Law regime. Since Statutes are inevitably incomplete, this confers an advantage to the Statute Law regime over the Case Law one. However, all Courts rule ex-post, after most economic decisions are already taken. Therefore, the...
Persistent link: https://www.econbiz.de/10013316491
We study a contracting model with unforeseen contingencies in which the court is an active player. Ex-ante, the contracting parties cannot include the risky unforeseen contingencies in the contract they draw up. Ex-post the court observes whether an unforeseen contingency occurred, and decides...
Persistent link: https://www.econbiz.de/10014035961
Shared social responsibility will shortly become a new basic concept for understanding social cohesion in Europe and also for the modeling of governance structures and management of social cohesion policies involving the public sector, the private profit and non profit sectors , and also the...
Persistent link: https://www.econbiz.de/10014043903
The first result in this paper says that given any efficient non-monetary allocation there is a balanced vector of transfers so that the resulting allocation is fair. The second result here says that given any efficient non-monetary allocation there is a pricing function defined on consumption...
Persistent link: https://www.econbiz.de/10014047626
Does inequality hinder or promote cooperation? To answer this question, we study a Prisoner’s Dilemma with local adaptation, to which we add heterogeneity in payoffs. In our model, agents vary in their wealth, and this inequality affects their potential gains and losses. We find that, in such...
Persistent link: https://www.econbiz.de/10014193639
This paper contains two results. The first result says that given any efficient non-monetary allocation there is a balanced vector of transfers so that the resulting allocation is fair. The second result says that given any efficient non-monetary allocation there is a pricing function defined on...
Persistent link: https://www.econbiz.de/10014219025