Convergence under Replication of Rules to Adjudicate Conflicting Claims

Abstract

We study the behavior of rules for the adjudication of con°icting claims when there are a large number of claimants with small claims. We model such situations by replicating some basic problem. We show that under replication, the random arrival rule (O'Neill, 1982) behaves like the proportional rule, the rule that is the most often recommended in this context. Also, under replication, the minimal overlap rule (O'Neill, 1982) behaves like the constrained equal losses rule, the rule that selects a division at which all claimants experience equal losses subject to no-one receiving a negative amount.Claims problems, Replication, Random arrival rule, Proportional rule, Minimal overlap rule, Constrained equal losses rule.