Non-manipulability by clones in bankruptcy problems

Abstract

We introduce non-manipulability by clones for bankruptcy problems, which entitles claimants to merge or split only when they are or become identical agents. We show that this weaker non-manipulability requirement, together with either claim monotonicity or claims continuity, allows for new characterizations of the proportional rule on the general class of bankruptcy problems. • We explore non-manipulability by identical agents for bankruptcy problems. • This weak form of immunity distinguishes the proportional rule for rational claims. • New axiomatizations are obtained by adding claim monotonicity or claims continuity. • We compare our results with those in de Frutos (1999) and Ju et al. (2007).