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Rationing a Commodity Along Fixed Paths

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  • Moulin, Hervé

Abstract

A private commodity is divided among agents with single peaked preferences over their share. A rationing method elicits individual peaks (demands); if the commodity is overdemanded (resp. underdemanded), no agent receives more (resp. less) than his peak. A fixed path rationing method allocates an overdemanded "good" along a path independent of individual demands, except that an agent receives exactly his demand if it is below the path-generated share. An underdemanded "bad" is allocated along another such path, except that an agent who demands more than his path-generated share receives exactly his peak. We consider four properties of allocation mechanisms: efficiency, strategyproofness, resource monotonicity, and consistency. Together, these axioms characterize precisely the set of fixed path rationing methods. The result holds when the commodity is infinitely divisible and when it comes in indivisible units.

Suggested Citation

  • Moulin, Hervé, 1998. "Rationing a Commodity Along Fixed Paths," Working Papers 98-01, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:98-01
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    References listed on IDEAS

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    Cited by:

    1. Bergantiños, Gustavo & Massó, Jordi & Neme, Alejandro, 2015. "The division problem under constraints," Games and Economic Behavior, Elsevier, vol. 89(C), pages 56-77.
    2. Ehlers, Lars, 2002. "On Fixed-Path Rationing Methods," Journal of Economic Theory, Elsevier, vol. 106(2), pages 472-477, October.
    3. Ergin, Haluk I., 2000. "Consistency in house allocation problems," Journal of Mathematical Economics, Elsevier, vol. 34(1), pages 77-97, August.
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    6. Papai, Szilvia, 2007. "Exchange in a general market with indivisible goods," Journal of Economic Theory, Elsevier, vol. 132(1), pages 208-235, January.
    7. , & Ilkilic, Rahmi & , & ,, 2012. "Balancing supply and demand under bilateral constraints," Theoretical Economics, Econometric Society, vol. 7(3), September.
    8. Chatterjee, Siddharth & Ertemel, Sinan & Kumar, Rajnish, 2023. "Rationing rules for risky claims," Journal of Mathematical Economics, Elsevier, vol. 108(C).
    9. Erlanson, Albin & Flores-Szwagrzak, Karol, 2015. "Strategy-proof assignment of multiple resources," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 137-162.
    10. Stovall, John E., 2014. "Collective rationality and monotone path division rules," Journal of Economic Theory, Elsevier, vol. 154(C), pages 1-24.
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    12. Bochet, Olivier & Sakai, Toyotaka, 2010. "Secure implementation in allotment economies," Games and Economic Behavior, Elsevier, vol. 68(1), pages 35-49, January.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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