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16:01, 29 September 2021: Erel Segal (talk | contribs) triggered filter 550, performing the action "edit" on Constrained equal awards. Actions taken: Tag; Filter description: nowiki tags inserted into an article (examine | diff)

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'''Constrained equal awards''' '''(CEA)''' is a division rule for solving [[bankruptcy problem]]<nowiki/>s. According to this rule, each claimant should receive an equal amount, except that no claimant should receive more than his/her claim. In the context of taxation, it is known as '''leveling tax'''.<ref name=":1">{{Cite journal|last=William|first=Thomson|date=2003-07-01|title=Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey|url=https://www.sciencedirect.com/science/article/abs/pii/S0165489602000707|journal=Mathematical Social Sciences|language=en|volume=45|issue=3|pages=249–297|doi=10.1016/S0165-4896(02)00070-7|issn=0165-4896}}</ref>

== Formal definition ==
There is a certain amount of money to divide, denoted by ''<math>E</math>'' (=Estate or Endowment). There are ''n'' ''claimants''. Each claimant ''i'' has a [[Claim in bankruptcy|''claim'']] denoted by ''<math>c_i</math>''. Usually, <math>\sum_{i=1}^n c_i > E</math>, that is, the estate is insufficient to satisfy all the claims.

The '''CEA''' rule says that each claimant ''i'' should receive <math>\min(c_i, r)</math>, where ''r'' is a constant chosen such that <math>\sum_{i=1}^n \min(c_i,r) = E</math>. The rule can also be described algorithmically as follows:

* Initially, all agents are active.
* While there are remaining units of the estate:
** The next estate unit is divided equally among all active agents.
** Each agent whose total allocation equals its claim becomes inactive.

== Examples ==
Examples with two claimants:

* <math>CEA(60,90; 100) = (50,50)</math>; here <math>r=50</math>. In general, when all claims are at least <math>E/n</math>, each claimant receives exactly <math>E/n</math>.
* <math>CEA(40,80; 100) = (40,60)</math>; here <math>r=60</math>.

Examples with three claimants:

* <math>CEA(50,100,150; 100) = (33.333, 33.333, 33.333)</math>; here <math>r=33.333</math>.
* <math>CEA(50,100,150; 200) = (50, 75, 75)</math>; here <math>r=75</math>.
* <math>CEA(50,100,150; 300) = (50, 100, 150)</math>; here <math>r=150</math>.

== References ==
{{Reflist}}
[[Category:Division rules for bankruptcy problems]]

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''''Constrained equal awards''' '''(CEA)''' is a division rule for solving [[bankruptcy problem]]<nowiki/>s. According to this rule, each claimant should receive an equal amount, except that no claimant should receive more than his/her claim. In the context of taxation, it is known as '''leveling tax'''.<ref name=":1">{{Cite journal|last=William|first=Thomson|date=2003-07-01|title=Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey|url=https://www.sciencedirect.com/science/article/abs/pii/S0165489602000707|journal=Mathematical Social Sciences|language=en|volume=45|issue=3|pages=249–297|doi=10.1016/S0165-4896(02)00070-7|issn=0165-4896}}</ref> == Formal definition == There is a certain amount of money to divide, denoted by ''<math>E</math>'' (=Estate or Endowment). There are ''n'' ''claimants''. Each claimant ''i'' has a [[Claim in bankruptcy|''claim'']] denoted by ''<math>c_i</math>''. Usually, <math>\sum_{i=1}^n c_i > E</math>, that is, the estate is insufficient to satisfy all the claims. The '''CEA''' rule says that each claimant ''i'' should receive <math>\min(c_i, r)</math>, where ''r'' is a constant chosen such that <math>\sum_{i=1}^n \min(c_i,r) = E</math>. The rule can also be described algorithmically as follows: * Initially, all agents are active. * While there are remaining units of the estate: ** The next estate unit is divided equally among all active agents. ** Each agent whose total allocation equals its claim becomes inactive. == Examples == Examples with two claimants: * <math>CEA(60,90; 100) = (50,50)</math>; here <math>r=50</math>. In general, when all claims are at least <math>E/n</math>, each claimant receives exactly <math>E/n</math>. * <math>CEA(40,80; 100) = (40,60)</math>; here <math>r=60</math>. Examples with three claimants: * <math>CEA(50,100,150; 100) = (33.333, 33.333, 33.333)</math>; here <math>r=33.333</math>. * <math>CEA(50,100,150; 200) = (50, 75, 75)</math>; here <math>r=75</math>. * <math>CEA(50,100,150; 300) = (50, 100, 150)</math>; here <math>r=150</math>. == References == {{Reflist}} [[Category:Division rules for bankruptcy problems]]'
Unified diff of changes made by edit (edit_diff)
'@@ -1,0 +1,27 @@ +'''Constrained equal awards''' '''(CEA)''' is a division rule for solving [[bankruptcy problem]]<nowiki/>s. According to this rule, each claimant should receive an equal amount, except that no claimant should receive more than his/her claim. In the context of taxation, it is known as '''leveling tax'''.<ref name=":1">{{Cite journal|last=William|first=Thomson|date=2003-07-01|title=Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey|url=https://www.sciencedirect.com/science/article/abs/pii/S0165489602000707|journal=Mathematical Social Sciences|language=en|volume=45|issue=3|pages=249–297|doi=10.1016/S0165-4896(02)00070-7|issn=0165-4896}}</ref> + +== Formal definition == +There is a certain amount of money to divide, denoted by ''<math>E</math>'' (=Estate or Endowment). There are ''n'' ''claimants''. Each claimant ''i'' has a [[Claim in bankruptcy|''claim'']] denoted by ''<math>c_i</math>''. Usually, <math>\sum_{i=1}^n c_i > E</math>, that is, the estate is insufficient to satisfy all the claims. + +The '''CEA''' rule says that each claimant ''i'' should receive <math>\min(c_i, r)</math>, where ''r'' is a constant chosen such that <math>\sum_{i=1}^n \min(c_i,r) = E</math>. The rule can also be described algorithmically as follows: + +* Initially, all agents are active. +* While there are remaining units of the estate: +** The next estate unit is divided equally among all active agents. +** Each agent whose total allocation equals its claim becomes inactive. + +== Examples == +Examples with two claimants: + +* <math>CEA(60,90; 100) = (50,50)</math>; here <math>r=50</math>. In general, when all claims are at least <math>E/n</math>, each claimant receives exactly <math>E/n</math>. +* <math>CEA(40,80; 100) = (40,60)</math>; here <math>r=60</math>. + +Examples with three claimants: + +* <math>CEA(50,100,150; 100) = (33.333, 33.333, 33.333)</math>; here <math>r=33.333</math>. +* <math>CEA(50,100,150; 200) = (50, 75, 75)</math>; here <math>r=75</math>. +* <math>CEA(50,100,150; 300) = (50, 100, 150)</math>; here <math>r=150</math>. + +== References == +{{Reflist}} +[[Category:Division rules for bankruptcy problems]] '
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