Families of sequential priority rules and random arrival rules with withdrawal limits

• Published in: Mathematical social sciences Vol. 113; pp. 136 - 148
• Main Author: Sanchez-Soriano, Joaquin
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.09.2021; Elsevier Science Ltd
• Subjects: Arbitration; Bankruptcy; Bankruptcy problems; Constrained equal awards rule; Equilibrium; Families & family life; Proportional rule; Random arrival rule; Sequential priority rules; Withdrawal limits; Withdrawals; Proportional rule; Random arrival rule; Bankruptcy problems; Sequential priority rules; Withdrawal limits; Constrained equal awards rule
• ISSN: 0165-4896; 1879-3118
• DOI: 10.1016/j.mathsocsci.2021.06.002

This paper deals with extensions of the family of sequential priority rules and the random arrival rule for bankruptcy problems when withdrawal limits are fixed by an arbitrator. We assume two approaches to limit withdrawals. The first is based on the principle that agents can only obtain at most a fixed part of the endowment each time they qualify for an award, and the second that agents can only receive at most a proportion of their claims each time they are attended. For each approach we introduce two pairs of families, each consisting of a sequential priority rule-like family and a random arrival rule-like family. Applying the first approach, we show that the constrained equal awards rule belongs to each of the families. In the second, we prove the same for the proportional rule. We study in detail one pair of families for each approach, and the others are examined in relation to them. •We study bankruptcy problems with withdrawal limits.•We introduce four new pairs of families of rules for bankruptcy problems.•Four of these new families generalize the family of sequential priority rules.•Four of these new families generalize the random arrival rule.