The tal-family of rules for bankruptcy problems

  1. Moreno-Ternero, Juan D.
  2. Villar, Antonio
Journal:
Working papers = Documentos de trabajo: Serie AD

Year of publication: 2001

Issue: 33

Type: Working paper

Abstract

This paper analyzes a family of solutions to bankruptcy problems that generalizes the Talmud rule (T) and encompasses both the constrained equal-awards rule (A) and the constrained equal-losses rule (L). We study the structural properties of this family of rules and provide a characterization result. That allows us to identify the distinctive features of these three reference rules, T, A, L.