New Characterizations of Old Bankruptcy Rules

Citation:

Dagan, Nir . “New Characterizations Of Old Bankruptcy Rules”. Discussion Papers 1994: n. pag. Print.

Abstract:

This paper presents axiomatic characterizations of two bankruptcy rules discussed in Jewish legal literature: the Constrained Equal Awards rule and the Contested Garment principle (the latter is defined only for two-creditor problems). A major property in these characterizations is independence of irrelevant claims, which requires that if an individual claim exceeds the total to be allocated it should be considered irrelevant.