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This paper analyzes a family of rules for bankruptcy problems that generalizes the Talmud rule (T) and encompasses both the constrained equal-awards rule (A) and the constrained equal-losses rule (L). The family is defined by means of a parameter that can be interpreted as a measure of the...
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This paper reports an experimental study on three well-known solutions for problems of adjudicating conflicting claims: the constrained equal-awards, the proportional, and the constrained equal-losses rules. We first let subjects play three games designed such that the unique equilibrium...
Persistent link: https://www.econbiz.de/10012756987
The veil of ignorance has been used often as a tool of recommending what justice requires with respect to the distribution of wealth. We complete Harsanyi's model of the veil of ignorance by appending information permitting objective comparisons among persons. We show that the veil-of-ignorance...
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Concede-and-divide is a widely accepted procedure to solve the problem of adjudicating two conflicting claims. In this paper we show that this procedure can be characterized by combining three standard properties in the literature: self-duality, lower securement, and restricted composition up....
Persistent link: https://www.econbiz.de/10012773780
We study in this paper mechanisms to construct equal-opportunity policies for resource allocation. In a model where individuals enjoy welfare as a function of the effort they expend, and the amount of a socially provided resource they consume, the aim is to allocate the social resource so that...
Persistent link: https://www.econbiz.de/10012766628
In this paper, we study the immunity of bankruptcy rules to manipulation via merging or splitting agents' claims. We focus on the TAL-family of bankruptcy rules (Moreno-Ternero amp; Villar, 2006), a one-parameter family encompassing three classical rules: the Talmud (T) rule, the constrained...
Persistent link: https://www.econbiz.de/10012766630
We explore the relationship between proportionality and manipulation (via merging or splitting agents' claims) in bankruptcy problems. We provide an alternative proof to the well-known result that, in an unrestricted domain, immunity to manipulation is equivalent to requiring proportional...
Persistent link: https://www.econbiz.de/10012779456