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 the excess claim should be considered irrelevant.
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The author gratefully acknowledges helpful conversations with Oscar Volij.
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Dagan, N. New characterizations of old bankruptcy rules. Soc Choice Welfare 13, 51–59 (1996). https://doi.org/10.1007/BF00179098
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DOI: https://doi.org/10.1007/BF00179098