A claims problem with n agents is a n+1 vector (, z) = (1,...,q,2) >0 with Y77 ; > x. Let C be the set of all claims problems with n agents. The interpretation of (,z) C*! is that there is a bankruptcy proceeding in which the value of the liquidated assets x is not enough to satisfy all the claims ; made by each creditor on the person, or firm, who went bankrupt. The agents are called claimants. A solution is a function s" : C* R} with > | s?(c,z) = z. In words: a solution stipulates how the amount z should be divided among the claimants, for each claims problem (c, ). When n = 2, the contested garment solution is 1 o2(c,x) = (x c3_y) T + 5[;{: (xc3_ )t = (x )], i = 1,2, which we discussed at length in lecture. (Recall the notation a = max{0, a}.) Problem 3. A solution is monotonic if, for any claims problems (, z) and (c,2') with