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Axiomatic Characterizations of the CEA Solution for Rationing Problems

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Author Info
Lahiri Somdeb

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Abstract

Situations abound in the real world, where aggregate demand for a commodity exceeds aggregate supply. When such situations of excess demand occur, what is required is some kind of rationing. The literature on rationing problems has an interesting origin in the Babylonian Talmud. The purpose of this paper is to characterize axiomatically and analyze the constrained equal award solution for rationing problems.

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Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number 1999-02-03.

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Date of creation: 03 Feb 1999
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Handle: RePEc:iim:iimawp:1999-02-03

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  1. Nir Dagan, 2008. "An axiomatization of the leveling tax-transfer policy," Economic theory and game theory 020, Nir Dagan. [Downloadable!]
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