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Stable Partitions in Many Division Problems: The Proportional and the Sequential Dictator Solutions

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  • Gustavo Bergantiños

    ()

  • Jordi Massó

    ()

  • Inés Moreno de Barreda

    ()

  • Alejandro Neme

    ()

Abstract

We study how to partition a set of agents in a stable way when each coalition in the partition has to share a unit of a perfectly divisible good, and each agent has symmetric single-peaked preferences on the unit interval of his potential shares. A rule on the set of preference profiles consists of a partition function and a solution. Given a preference profile, a partition is selected and as many units of the good as the number of coalitions in the partition are allocated, where each unit is shared among all agents belonging to the same coalition according to the solution. A rule is stable at a preference profile if no agent strictly prefers to leave his coalition to join another coalition and all members of the receiving coalition want to admit him. We show that the proportional solution and all sequential dictator solutions admit stable partition functions. We also show that stability is a strong requirement that becomes easily incompatible with other desirable properties like e¢ ciency, strategy-proofness, anonymity, and non-envyness.

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Bibliographic Info

Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 941.13.

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Length: 17
Date of creation: 09 Dec 2013
Date of revision:
Handle: RePEc:aub:autbar:941.13

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Keywords: Division Problem; Symmetric Single-peaked Preferences; Stable Partition.;

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  1. Herrero, Carmen & Villar, Antonio, 2000. "An alternative characterization of the equal-distance rule for allocation problems with single-peaked preferences," Economics Letters, Elsevier, vol. 66(3), pages 311-317, March.
  2. Ehlers, L., 2001. "On Fixed-Path Rationing Methods," Cahiers de recherche 2001-24, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Schummer, J. & Thomson, W., 1996. "Two Derivations of the Uniform Rule and an Application to Bankruptcy," RCER Working Papers 423, University of Rochester - Center for Economic Research (RCER).
  4. Anirban Kar & Özgür Kıbrıs, 2008. "Allocating multiple estates among agents with single-peaked preferences," Social Choice and Welfare, Springer, vol. 31(4), pages 641-666, December.
  5. Lars Ehlers, 2002. "Resource-monotonic allocation when preferences are single-peaked," Economic Theory, Springer, vol. 20(1), pages 113-131.
  6. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
  7. Massó, Jordi & Moreno de Barreda, Inés, 2011. "On strategy-proofness and symmetric single-peakedness," Games and Economic Behavior, Elsevier, vol. 72(2), pages 467-484, June.
  8. Thomson William, 1994. "Consistent Solutions to the Problem of Fair Division When Preferences Are Single-Peaked," Journal of Economic Theory, Elsevier, vol. 63(2), pages 219-245, August.
  9. Thomson, William, 1997. "The Replacement Principle in Economies with Single-Peaked Preferences," Journal of Economic Theory, Elsevier, vol. 76(1), pages 145-168, September.
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