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Compensating losses and sharing surpluses in project-allocation situations

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Author Info
Ju, Y.
Ruys, P.H.M.
Borm, P.E.M. (Tilburg University, Center for Economic Research)

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Abstract

By introducing the notions of projects and shares, this paper studies a class of economic environments, the so-called project-allocation situations, in which society may profit from cooperation, i.e., by reallocating the initial shares of projects among agents. This paper mainly focuses on the associated issues of compensation of losses and surplus sharing arising from the reallocation of projects. For this purpose, we construct and analyze an associated project-allocation game and a related system of games that explicitly models the underlying cooperative process. Speciffic solution concepts are proposed.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 37.

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Date of creation: 2004
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Handle: RePEc:dgr:kubcen:200437

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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  1. Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2004. "The consensus value : a new solution concept for cooperative games," Discussion Paper 50, Tilburg University, Center for Economic Research. [Downloadable!]
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  2. Moulin, Herve, 1987. "Egalitarian-Equivalent Cost Sharing of a Public Good," Econometrica, Econometric Society, vol. 55(4), pages 963-76, July. [Downloadable!] (restricted)
  3. Curiel, Imma & Pederzoli, Giorgio & Tijs, Stef, 1989. "Sequencing games," European Journal of Operational Research, Elsevier, vol. 40(3), pages 344-351, June. [Downloadable!] (restricted)
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  1. Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2004. "The consensus value : a new solution concept for cooperative games," Discussion Paper 50, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Yuan Ju & Peter Borm, 2005. "Externalities and Compensation:Primeval Games and Solutions," Keele Economics Research Papers KERP 2005/05, Centre for Economic Research, Keele University. [Downloadable!]
    Other versions:
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