Balancing supply and demand under bilateral constraints
In a moneyless market, a non storable, non transferable homogeneous commodity is reallocated between agents with single-peaked preferences. Agents are either suppliers or demanders. Transfers between a supplier and a demander are feasible only if they are linked, and the links form an arbitrary bipartite graph. Typically, supply is short in one segment of the market, while demand is short in another. Information about individual preferences is private, and so is information about feasible links: an agent may unilaterally close one of her links if it is in her interest to do so. Our egalitarian transfer solution rations only the long side in each market segment, equalizing the net transfers of rationed agents as much as permitted by the bilateral constraints. It elicits a truthful report of both preferences and links: removing a feasible link is never profitable to either one of its two agents. Together with efficiency, and a version of equal treatment of equals, these properties are characteristic.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- EHLERS, Lars & KLAUS, Bettina, 2001.
"Probabilistic Assignments of Identical Indivisible Objects and Uniform Probabilistic Rules,"
Cahiers de recherche
2001-27, Universite de Montreal, Departement de sciences economiques.
- Lars Ehlers & Bettina Klaus, 2003. "Probabilistic assignments of identical indivisible objects and uniform probabilistic rules," Review of Economic Design, Springer;Society for Economic Design, vol. 8(3), pages 249-268, October.
- Ehlers, L. & Klaus, B., 2001. "Probabilistic Assignements of Identical Indivisible Objects and Uniform Probabilistic Rules," Cahiers de recherche 2001-27, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
- Bettina Klaus & Hans Peters & Ton Storcken, 1998. "Strategy-proof division with single-peaked preferences and individual endowments," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(2), pages 297-311.
- Corominas-Bosch, Margarida, 2004. "Bargaining in a network of buyers and sellers," Journal of Economic Theory, Elsevier, vol. 115(1), pages 35-77, March.
When requesting a correction, please mention this item's handle: RePEc:the:publsh:893. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin J. Osborne)
If references are entirely missing, you can add them using this form.