Abstract
Abstract This chapter provides an overview of the key concepts of insolvency law. It illustrates the machinery of insolvency law by employing basic notions of descriptive law and economics alongside game theory. Initially, insolvency law dealt with the punishment inflicted on insolvent merchants and ordinary overindebted people. Meanwhile, modern insolvency law refers to a debt-collection device based on the assumption of a flaw of cooperation when a distressed debtor is indebted to more than one creditor. The chapter presents several figures referring to the ‘prisoner’s dilemma game’, the ‘bargaining game’, and the ‘chicken game’. These games reproduce the dynamic of, and pitfall in, cooperation that occurs in both everyday life and insolvency cases.
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