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Envy-free solutions, Non-linear equilibrium and Egalitarian-equivalence for the Package Assignment Problem

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  • Lahiri, Somdeb

Abstract

The first result in this paper says that given any efficient non-monetary allocation there is a balanced vector of transfers so that the resulting allocation is fair. The second result here says that given any efficient non-monetary allocation there is a pricing function defined on consumption bundles and a balanced vector of transfers so that they together form a non-linear market equilibrium. The first result is used to establish the second. Subsequently we prove the existence of egalitarian equivalent solutions for package assignment problems and shows that they satisfy the “fair share guaranteed” property.

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File URL: http://mpra.ub.uni-muenchen.de/8444/
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File URL: http://mpra.ub.uni-muenchen.de/8498/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8444.

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Date of creation: 25 Apr 2008
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Handle: RePEc:pra:mprapa:8444

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  1. Gul, F. & Stacchetti, E., 1997. "Walrasian Equilibrium Without Complementarities," Papers 97-03, Michigan - Center for Research on Economic & Social Theory.
  2. Carmen BeviÂ, 1998. "Fair allocation in a general model with indivisible goods," Review of Economic Design, Springer, vol. 3(3), pages 195-213.
  3. Bikhchandani, Sushil & Ostroy, Joseph M., 2002. "The Package Assignment Model," Journal of Economic Theory, Elsevier, vol. 107(2), pages 377-406, December.
  4. Tjalling C. Koopmans & Martin J. Beckmann, 1955. "Assignment Problems and the Location of Economic Activities," Cowles Foundation Discussion Papers 4, Cowles Foundation for Research in Economics, Yale University.
  5. Elisha A. Pazner & David Schmeidler, 1975. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," Discussion Papers 174, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-39, July.
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