Voting rules in insolvency law: a simple-game theoretic approach

A chief characteristic of modern insolvency law in Canada, Germany, the UK, and the US is the provision for ‘workouts’ or ‘schemes of arrangement’ by which insolvent companies can attempt to rehabilitate the business. If reorganization is chosen, the debtor has to devise a plan of action which will be voted upon by claimants. The voting rules, however, differ in each jurisdiction to a greater or lesser extent and as yet have not been analyzed in any rigorous manner. This paper provides an approach based upon the theory of simple games to analyze the rules in terms of the ease which each of these regimes can pass (or hinder) plans and how these rules distribute value among claimants. We pay particular attention to the role of classification and the effect of coalition formation.     

Designing a dispute resolution system for water policy and management

Conclusions The Montana state water planning process represents one example of how a government agency with decision-making responsibilities can design and facilitate a dispute resolution system. Dispute resolution systems can increase the participation of all affected interests in developing and implementing public policy. This, in turn, should increase their ownership in the final decision and in seeing that it is implemented. A dispute resolution system may not decrease the volume of conflicts, per se, but it should reduce the high costs of conflict and realize the benefits of conflict more efficiently.The use of dispute resolution systems to address complex, multi-party public policy issues also provides other benefits, including the consideration of diverse perspectives and interests; the cooperative and systematic analysis of technical and scientific information; the formation of more pragmatic, equitable, and mutually acceptable goals and alternatives; and the improvement of relationships among diverse, often competing interests, government agencies, and policymakers. Matthew McKinney is a policy analyst and facilitator with the State of Montana Department of Natural Resources and Conservation, 1520 East Sixth Avenue, Helena, Mont. 59620.An earlier version of this article was presented at a conference titled Innovation in Western Water Law and Management, held at the Natural Resources Law Center, University of Colorado School of Law, 5–7 June, 1991.