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Sharing the proceeds from a hierarchical venture when agents have needs

Author

Listed:
  • R. Pablo Arribillaga
  • Juan D. Moreno-Ternero
  • Pablo Neme

Abstract

We consider a setting in which a set of agents are hierarchically organized for a joint venture. They each generate revenues for the joint venture and have individual needs to cover. The aim is to distribute aggregate revenues appropriately. We characterize a family of need-adjusted geometric rules where the net revenue (after covering needs) "bubbles up" in the hierarchy, as well as a need-adjusted serial rule in which the net revenue is equally shared among each agent and his predecessors in the hierarchy.

Suggested Citation

  • R. Pablo Arribillaga & Juan D. Moreno-Ternero & Pablo Neme, 2026. "Sharing the proceeds from a hierarchical venture when agents have needs," Papers 2604.18108, arXiv.org.
    • Handle: RePEc:arx:papers:2604.18108
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    References listed on IDEAS

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    1. Jens Leth Hougaard & Juan D. Moreno-Ternero & Lars Peter Østerdal, 2022. "Optimal Management of Evolving Hierarchies," Management Science, INFORMS, vol. 68(8), pages 6024-6038, August.
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    7. Gudmundsson, Jens & Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2025. "Optimizing successive incentives: Rewarding the past or motivating the future?," Games and Economic Behavior, Elsevier, vol. 153(C), pages 10-29.
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    9. Ricardo Martínez & Juan D. Moreno‐Ternero, 2024. "Redistribution with needs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    10. Erik Ansink & Hans-Peter Weikard, 2015. "Composition properties in the river claims problem," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 807-831, April.
    11. Ricardo Martinez & Juan D. Moreno-Ternero, 2026. "The geometric adjudication of water rights in international rivers," Papers 2601.04150, arXiv.org.
    12. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Tvede, Mich & Østerdal, Lars Peter, 2017. "Sharing the proceeds from a hierarchical venture," Games and Economic Behavior, Elsevier, vol. 102(C), pages 98-110.
    13. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 187-210, February.
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    16. Ju, Biung-Ghi, 2013. "Coalitional manipulation on networks," Journal of Economic Theory, Elsevier, vol. 148(2), pages 627-662.
    17. Ricardo Martínez & Juan D. Moreno-Ternero, 2025. "The Allocation of Riparian Water Rights," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(12), pages 3841-3872, December.
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