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- Bankruptcy theory

Bankruptcy problem

A bankruptcy problem, also called a claims problem, is a problem of distributing a homogeneous divisible good (such as money) among people with different claims. The focus is on the case where the amo

Proportional rule (bankruptcy)

The proportional rule is a division rule for solving bankruptcy problems. According to this rule, each claimant should receive an amount proportional to their claim. In the context of taxation, it cor

Strategic bankruptcy problem

A strategic bankruptcy problem is a variant of a bankruptcy problem (also called claims problem) in which claimants may act strategically, that is, they may manipulate their claims or their behavior.

Contested garment rule

The contested garment (CG) rule, also called concede-and-divide, is a division rule for solving problems of conflicting claims (also called "bankruptcy problems"). The idea is that, if one claimant's

Constrained equal losses

Constrained equal losses (CEL) is a division rule for solving bankruptcy problems. According to this rule, each claimant should lose an equal amount from his or her claim, except that no claimant shou

Constrained equal awards

Constrained equal awards (CEA), also called constrained equal gains, is a division rule for solving bankruptcy problems. According to this rule, each claimant should receive an equal amount, except th

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