Bankruptcy Claims Trading

Updating claims in bankruptcy problems

We reexamine the consistency axiom in bankruptcy problems and propose arguments in favor of an alternative definition of a reduced problem. The classical definition updates the size of the estate while keeping agents’ claims unaffected. Instead, we suggest updating agents’ claims along with the estate. The resulting consistency axiom characterizes the well-known Random Arrival rule as the uniqu...

Application of the Bankruptcy Theory and Conflicting Claims on Water Resources Allocation of Zayanderud

Solving the Water conflict and optimal allocation of common water resources are the most important service of cooperative game theory to water economics. Zayandehrud basin is the most important disputed basin in several neighboring provinces in the first class basin of Iran's central plateau. The purpose of this research is to use the game theory with application of Bankruptcy approach (conflic...

A Parimutuel Market Microstructure for Contingent Claims Trading

A parimutuel market microstructure for contingent claims trading is proposed and analyzed. A parimutuel microstructure is a call auction where relative equilibrium prices of contingent claims are endogenously determined using a specific mechanism. We propose a market microstructure incorporating parimutuel principles which provides for notional derivatives transactions, limit orders, and bundli...

A bankruptcy problem and an information trading problem: Applications tok-convex games

The paper is devoted to two real problems that generate a cooperative game model with a so-called k-convex characteristic function when certain conditions are fulfilled. Both a bankruptcy problem and an information trading problem are modelled as a cooperative game by constructing the corresponding bankruptcy game as well as the information market game. Firstly, it is established that the bankr...

Bankruptcy Judges and Bankruptcy Venue: Some Thoughts on Delaware