Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 27 March 1997
Length: 2 pages
Data source: Generalised experience
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Abstract
Describes a problem of bankruptcy, following the treatment in the 2,000 year-old Babylonian Talmud. A person dies, leaving a number of debts that total more than the size of the estate. The question is: How should the estate be divided among the creditors? The case presents the Talmudic prescriptions for dividing three such estates. The estate division problem is then reinterpreted as the problem of how a number of partners involved in a project should divide the total cost of the project among them.; Can be used to practice the value and added value concepts. Also identifies a historical progenitor of added value theory. The Talmudic prescription for estate division coincides with the added value approach. (In particular, it is neither equal nor proportional division.) The analysis applies beyond the context of estate division, as the cost- sharing reinterpretation demonstrates.
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Abstract
Describes a problem of bankruptcy, following the treatment in the 2,000 year-old Babylonian Talmud. A person dies, leaving a number of debts that total more than the size of the estate. The question is: How should the estate be divided among the creditors? The case presents the Talmudic prescriptions for dividing three such estates. The estate division problem is then reinterpreted as the problem of how a number of partners involved in a project should divide the total cost of the project among them.; Can be used to practice the value and added value concepts. Also identifies a historical progenitor of added value theory. The Talmudic prescription for estate division coincides with the added value approach. (In particular, it is neither equal nor proportional division.) The analysis applies beyond the context of estate division, as the cost- sharing reinterpretation demonstrates.