Remarks on solidarity in bankruptcy problems when agents merge or Split, Mathematical Social Sciences

Article  -  Monday, 18 September 2023

Calleja, P., Llerena, F. and Sudhölter, P. (2023): "Remarks on solidarity in bankruptcy problems when agents merge or split", Mathematical Social Sciences

In this note, we investigate the relationship between non-manipulability via merging (splitting) and strong non-manipulability via merging (splitting). Our analysis reveals that while these two non- manipulability axioms are generally not equivalent, they do coincide when the principle of solidarity is satisfied. This principle is fulfilled by a wide range of bankruptcy rules, including parametric rules. It remains open to investigate if there are rules satisfying non-manipulability via merging (splitting) and consistency but neither strong non-manipulability via merging (splitting) nor resource monotonicity. Although our intuition is that it is, this is a challenging problem since most classical bankruptcy rules exhibit resource monotonicity.

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