Describes a problem of insolvency, after treatment in the 2,000-year-old Babylonian Talmud. A person dies, so a number of debts amounting to more than the size of the building. The question is: How should the estate be divided among the creditors? The case represents the Talmudic rules for dividing three such items. The property division problem becomes a problem, as a number of partners are involved in a project, the total cost of the project should be interpreted to divide … Read more »

Describes a problem of insolvency, after treatment in the 2,000-year-old Babylonian Talmud. A person dies, so a number of debts amounting to more than the size of the building. The question is: How should the estate be divided among the creditors? The case represents the Talmudic rules for dividing three such items. The property division problem becomes a problem, as a number of partners are involved in a project should divide the total cost of the project reinterprets them. The Talmud recipe for real estate division coincides with the value-added approach. (In particular, it is neither equal nor proportional division.) The analysis applies to the context of property division, as the cost-sharing demonstrates reinterpretation.
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from
Adam Brandenburger,
Harborne W. Stuart, Jr.,
Barry J. Nalebuff
Source: Harvard Business School
2 pages.
Publication Date: Jan 26, 1995. Prod #: 795087-PDF-ENG
Bankruptcy Problem from the Talmud HBR case solution