Dataset: Fairness in Bankruptcy Situations: An Experimental Study, 2015

Abstract

The pari passu principle is the most prominent principle in the law of insolvency. This study is based on a lab experiment designed to study whether people find this principle a fair solution to the bankruptcy problem. The experimental design generates situations where participants work and accumulate claims in firms, some of which subsequently go bankrupt. Third-party arbitrators were randomly assigned to determine how the liquidation value of the bankrupt firms should be distributed between claimants. The main finding was that there is a striking support for the pari passu principle of awarding claimants proportionally to their pre-insolvency claims. A random utility model that allows for the arbitrators to differ in what they consider a fair solution to the bankruptcy problem was estimates, and found that about 85 percent of the participants endorsed the proportional rule. Also a non-negligible fraction of the arbitrators followed the constrained equal losses rule, while there was almost no support in the experiment for the constrained equal awards rule or other fairness rules suggested in the normative literature. Finally, the estimated random utility model nicely captures the observed arbitrator behavior, in terms of both the overall distribution of awards and the relationship between awards and claims.  

The data includes three datasets with information about: 1) decision-makers 2) production decision and outcomes 3) third-party distributions under bankruptcy.

For access to the dataset, use the NSD application form:  

http://www.nsd.uib.no/nsd/english/orderform.html

Variable Groups

Full Title

Fairness in Bankruptcy Situations: An Experimental Study, 2015

Identification Number

NSD2230

Authoring Entity

Name Affiliation
Cappelen, Alexander W. Centre for Applied Research, NHH

Producer

Name Affiliation Abbreviation Role
Cappelen, Alexander W. Centre for Applied Research SNF Principal Investigator

Copyright

Copyright (C) 2015 Alexander W. Cappelen, SNF

Funding Agency/Sponsor

Name Abbreviation Role Grant
The Research Council of Norway RCN 185831

Data Distributor

Name Affiliation Abbreviation
NSD - Norwegian Centre for Research Data NSD

Version

Date: 2015-11-25

Notes

Original data from Alexander W. Cappelen, Centre for Applied Research are documented and prepared, first NSD edition.

Bibliographic Citation

"Fairness in Bankruptcy Situations: An Experimental Study, 2015". Data collected by Alexander W. Cappelen, Centre for Applied Research. First NSD edition, Bergen 2015.

List of Keywords

Topic Classification

Time Period Covered

Start End Cycle
2015 2015

Date of Collection

Start End Cycle
2015 2015

Country

Norway  (NO)

Geographic Coverage

Country

Unit of Analysis

Individual

Universe

Students at The Norwegian School of Economics.

Kind of Data

Experimental data

Time Method

Cross-sectional survey

Data Collector

Cappelen, Alexander W., Centre for Applied Research

Sampling Procedure

The participants were students at NHH (The Norwegian School of Economics ). 109 people participated, 78 men and 31 women. There were four sessions which all took place on the same day. Each session lasted around 90 minutes and were conducted in a lab using a web-based interface. The trial was double-blind, in other words neither participants or researchers could associate decisions with specific participants.
Net sample: 109

Mode of Data Collection

Simulation

Location

Availability Status

Data from "Fairness in bankruptcy situations: an experimental study, 2015" are made available for research, teaching and students when ordered.

Extent of Collection

3 data file(s); different formats can be made.

Restrictions

Data from ”Fairness in bankruptcy situations: an experimental study, 2015” are made available for research, teaching and students when ordered.

Citation Requirement

Users are obliged to refer to producer and distributor of the data by writing the following in forewords or footnotes in eventual publications:
"(Some of) the data applied in the analysis in this publication are based on "Fairness in bankruptcy situations: an experimental study, 2015". The survey was financed by The Reasearch Council of Norway. The data are provided by Alexander W. Cappelen, Norwegian School of Economics, Department of Economics  and prepared and made available by NSD - Norwegian Centre for Research Data. Neither Alexander W. Cappelen, Norwegian School of Economics, Department of Economics , The Research Council of Norway nor NSD are responsible for the analysis/interpretation of the data presented here.

Deposit Requirement

Access to data is given on the condition that NSD gets a PDF-file of eventual reports that are written on the basis of the data. This to ensure best possible information of the use of data we distribute.

Conditions

The order form has to include name, institutional affiliation, project title, information about sources of financing and postal address. A declaration of secrecy has to be signed before delivery of data.

Disclaimer

Neither Alexander W. Cappelen, Norwegian School of Economics, Department of Economics, The Research Council of Norway nor NSD are responsible for the analysis/interpretation of the data presented here.

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Related Publications

Fairness in bankruptcy situations: An experimental study.

Cappelen, A. W., Luttens, R. I., Sørensen, E. Ø. og Tungodden, B. (2015) Fairness in bankruptcy situations: an experimental study, Discussion Paper 17/2015, Department of Economics, NHH Norwegian School of Economics.

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