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Stochastic bankruptcy games

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Author

  • Helga Habis
  • P.J.J. Herings

Summary, in English

We study bankruptcy problems where the estate and the claims have stochastic values and we allow these values to be correlated. We associate a transferable utility game with uncertainty to a stochastic bankruptcy problem and use the Weak Sequential Core as a solution concept for such games. We test the stability of a number of well known division rules in this stochastic setting and find that all of them are unstable, with the exception of the stochastic extension of the Constrained Equal Awards rule which leads to a Weak Sequential Core element.

Publishing year

2013

Language

English

Pages

973-988

Publication/Series

International Journal of Game Theory

Volume

42

Issue

4

Document type

Journal article

Publisher

Springer

Topic

  • Economics

Keywords

  • Transferable utility games Uncertainty Weak Sequential Core Bankruptcy games

Status

Published

ISBN/ISSN/Other

  • ISSN: 1432-1270