An analysis of dynamic bankruptcy problems

Abstract

Bu makalede, dinamik iflas problemleri alaninda Pareto optimal ve strategy-proof dagitim kurallari incelenmistir. Ilk olarak dinamik iflas problemlerinin tanimlandigi model gelistirilmistir. Klasik iflas problemleri literaturundeki onemli aksiyomlar dinamik model icin yeniden tanimlanmistir. Bu calismada iki ajanli ve iki periyotluk model kullanilmistir. Ilk sonucta Pareto optimal dagitim kurallari karakterize edilmistir. Makalenin ana sonucunda ise hem Pareto optimal hem de strategy-proof dagitim kurallari karakterize edilmistir.

In this paper, we analyse Pareto optimal and strategy-proof allocation rules on the dynamic bankruptcy domain. We first develop a model in which dynamic bankruptcy problems are defined. We then redefine the well-known axioms of the classical bankruptcy literature for the dynamic case. In our analysis, for simplicity, two agents and two periods are considered. We first characterize Pareto optimal allocations on the dynamic bankruptcy domain. The main result of the paper characterizes the Pareto optimal and strategy-proof allocation rules on the same domain.