Political parties in Northern Ireland recently used a divisor method of apportionment to choose, in sequence, ten cabinet ministries. If the parties have complete information about each others' preferences, we show that it may not be rational for them to act sincerely by choosing their most-preferred ministry that is available. One consequence of acting sophisticatedly is that the resulting allocation may not be Pareto-optimal, making all the parties worse off. Another is nonmonotonicty-choosing earlier may hurt rather than help a party. We introduce a mechanism that combines sequential choices with a structured form of trading that results in sincere choices for two parties. Although there are difficulties in extending this mechanism to more than two parties, other approaches are explored, such as permitting parties to making consecutive choices not prescribed by an apportionment method. But certain problems, such as eliminating envy, remain.
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Paper provided by C.V. Starr Center for Applied Economics, New York University in its series Working Papers with number
02-06.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Brams, S. J. & Eldelman, P. H. & Fishburn, P. C., 2000.
"Fair Division of Indivisible Items,"
Working Papers
00-15, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
Other versions:
Brams, S. J. & Eldelman, P. H. & Fishburn, P. C., 2000.
"Paradoxes of Fair Division,"
Working Papers
00-13, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
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