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Deviation from proportionality and Lorenz-domination for claims problems

Author

Listed:
  • Miguel Ángel Mirás Calvo

    (Universidade de Vigo)

  • Iago Núñez Lugilde

    (Universidade de Vigo)

  • Carmen Quinteiro Sandomingo

    (Universidade de Vigo)

  • Estela Sánchez-Rodríguez

    (Universidade de Vigo)

Abstract

The Lorenz order is commonly used to compare rules for claims problems. In this paper, we incorporate the average of awards rule, the mean value of the set of awards vectors for a claims problem, to the ranking of the standard rules by proving some properties that are satisfied by this rule. We define a pair of coefficients, inspired by the Gini index, aimed at measuring, for any given claims problem, the discrepancy between the awards assigned by a rule and the proportional division. We generalize the proportionality deviation indices by introducing coefficients that measure the deviation between the awards selected by any two division rules. We show how these deviation indices are related to the Lorenz order.

Suggested Citation

  • Miguel Ángel Mirás Calvo & Iago Núñez Lugilde & Carmen Quinteiro Sandomingo & Estela Sánchez-Rodríguez, 2023. "Deviation from proportionality and Lorenz-domination for claims problems," Review of Economic Design, Springer;Society for Economic Design, vol. 27(2), pages 439-467, June.
    • Handle: RePEc:spr:reecde:v:27:y:2023:i:2:d:10.1007_s10058-022-00300-y
    DOI: 10.1007/s10058-022-00300-y
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    References listed on IDEAS

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    1. Yoichi Kasajima & Rodrigo Velez, 2011. "Reflecting inequality of claims in gains and losses," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 283-295, February.
    2. Kristof Bosmans & Luc Lauwers, 2011. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(4), pages 791-807, November.
    3. Lidia Ceriani & Paolo Verme, 2012. "The origins of the Gini index: extracts from Variabilità e Mutabilità (1912) by Corrado Gini," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 421-443, September.
    4. Julio González-Díaz & Estela Sánchez-Rodríguez, 2007. "A natural selection from the core of a TU game: the core-center," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(1), pages 27-46, September.
    5. Kristof Bosmans & Luc Lauwers, 2011. "Lorenz comparisons of nine rules for the adjudication of conflicting claims," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(4), pages 791-807, November.
    6. Kasajima, Yoichi & Velez, Rodrigo A., 2010. "Non-proportional inequality preservation in gains and losses," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1079-1092, November.
    7. Schummer, James & Thomson, William, 1997. "Two derivations of the uniform rule and an application to bankruptcy," Economics Letters, Elsevier, vol. 55(3), pages 333-337, September.
    8. Kristof Bosmans & Erik Schokkaert, 2009. "Equality preference in the claims problem: a questionnaire study of cuts in earnings and pensions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 533-557, November.
    9. Hougaard, Jens Leth & Osterdal, Lars Peter, 2005. "Inequality preserving rationing," Economics Letters, Elsevier, vol. 87(3), pages 355-360, June.
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