proportional approach to bankruptcyProblems with a guaranteed minimum

Resumen

In a distribution problem, and specifically in bankruptcy issues, the Proportional (P) and the Egalitarian (EA) divisions are two of the most popular ways to resolve the conflict. The Constrained Equal Awards rule (CEA) is introduced in bankruptcy literature to ensure that no agent receives more than her claim, a problem that can arise when using the egalitarian division. We propose an alternative modification, by using a convex combination of P and EA. The recursive application of this new rule finishes at the CEA rule. Our proposal ensures a mínimum amount to each agent, and distributes the remaining estate in a proportional way.