In this paper, we analyze sequential bankruptcy problems, which generalize bankruptcy problems. They contain the problems of sharing water in a transboundary river and of allocating expedition rewards in projects. We provide three mechanisms for generalizing rules for bankruptcy problems to...

The concede-and-divide rule is a basic solution for bankruptcy problems with two claimants. An extension of the concede-and-divide rule to bankruptcy problems with more than two claimants is provided.This extension not only uses the concede-and-divide principle in its procedural definition, but...

In a Case Law regime Courts have more flexibility than in a Statute Law regime. Since Statutes are inevitably incomplete, this confers an advantage to the Statute Law regime over the Case Law one. However, all Courts rule ex-post, after most economic decisions are already taken. Therefore, the...

In a Case Law regime Courts have more flexibility than in a Statute Law regime. Since Statutes are inevitably incomplete, this confers an advantage to the Statute Law regime over the Case Law one. However, all Courts rule ex-post, after most economic decisions are already taken. Therefore, the...

Road cycling races, although won by individual riders, are a competition of teams. Riding behind other riders significantly reduces the energy required to hold a given speed. These races thus provide free-riding incentives. We introduce a game-theoretic framework of this strategic setup to...

We find an economic rationale for the common sense answer to the question in our title - courts should not always enforce what the contracting parties write. We describe and analyze a contractual environment that allows a role for an active court. An active court can improve on the outcome that...