van den Brink, J.R., Funaki, Y. and van der Laan, G. (2013). Characterization of the Reverse Talmud bankruptcy rule by Exemption and Exclusion properties European Journal of Operational Research, 228:413--417.

Affiliated author

Rene van den Brink
Publication year

2013

Journal

European Journal of Operational Research

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The Reverse Talmud rule for bankruptcy problems applies the Constrained Equal Awards rule (CEA rule) for 'large' amounts of the estate, while it applies the Constrained Equal Losses rule (CEL rule) for 'small' amounts of the estate. The CEA rule, respectively CEL rule, can be axiomatized using the Exemption and Exclusion properties respectively. There is no rule that satisfies both these two properties. In this paper we axiomatize the Reverse Talmud rule by using compatible weaker versions of the Exemption and Exclusion properties. {\textcopyright} 2013 Elsevier B.V. All rights reserved.