The TAL-Family of rules for bankruptcy problems

Abstract

This paper analyzes a family of rules for bankruptcy problems that generalizes the Talmud rule (T) and encompasses both the constrained equal-awards rule (A) and the constrained equal-losses rule (L). The family is defined by means of a parameter theta is an element of [0, 1] that can be interpreted as a measure of the distributive power of the rule. We provide a systematic study of the structural properties of the rules within the family and its connections with the existing literature.