Bankruptcy Problem Allocations and the Core of Convex Games

Abstract EN

A well-known result related to bankruptcy problems establishes that a vector is a bankruptcy allocation if and only if it belongs to the core of the associated O’Neill’s bankruptcy game.

In this paper we show that this game is precisely the unique TU-game based on convex functions that satisfies the previous result.

In addition, given a bankruptcy problem, we show a way for constructing bankruptcy games such that the set of bankruptcy allocations is a subset of their core or their core is a subset of the set of bankruptcy allocations.

Also, we show how these results can be applied for finding new bankruptcy solutions.