The Division Problem with Voluntary Participation
AbstractThe division problem consists of allocating a given amount of an homogeneous and perfectly divisible good among a group of agents with single-peaked preferences on the set of their potential shares. A rule proposes a vector of shares for each division problem. The literature has implicitly assumed that agents will find acceptable any share they are assigned to. In this paper we consider the division problem when agentsparticipation is voluntary. Each agent has an idiosyncratic interval of acceptable shares where his preferences are single-peaked. A rule has to propose to each agent either to not participate or an acceptable share because otherwise he would opt out and this would require to reassign some of the remaining agentsshares. We study a subclass of efficient and consistent rules and characterize extensions of the uniform rule that deal explicitly with agentsvoluntary participation.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 437.
Date of creation: Feb 2010
Date of revision:
Division Problem; Single-peaked Preferences; Uniform Rule; Voluntary Participation;
Other versions of this item:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
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