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A Sequential Allocation Problem: The Asymptotic Distribution of Resources

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  • Osorio, Antonio

Abstract

In this paper we consider a sequential allocation problem with n individuals. The first individual can consume any amount of some endowment leaving the remaining for the second individual, and so on. Motivated by the limitations associated with the cooperative or non-cooperative solutions we propose a new approach. We establish some axioms that should be satisfied, representativeness, impartiality, etc. The result is a unique asymptotic allocation rule. It is shown for n=2,3,4, and a claim is made for general n. We show that it satisfies a set of desirable properties.

Suggested Citation

  • Osorio, Antonio, 2014. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," MPRA Paper 56690, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56690
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    More about this item

    Keywords

    Sequential allocation rule; River sharing problem; Cooperative and non-cooperative games; Dictator and ultimatum games.;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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