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Asymmetrically Fair Rules for an Indivisible Good Problem with a Budget Constraint

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  • Paula Jaramillo
  • Çagatay Kayi
  • Flip Klijn

Abstract

We study a particular restitution problem where there is an indivisible good (land or property) over which two agents have rights: the dispossessed agent and the owner. A third party, possibly the government, seeks to resolve the situation by assigning rights to one and compensate the other. There is also a maximum amount of money available for the compensation. We characterize a family of asymmetrically fair rules that are immune to strategic behavior, guarantee minimal welfare levels for the agents, and satisfy the budget constraint.

Suggested Citation

  • Paula Jaramillo & Çagatay Kayi & Flip Klijn, 2012. "Asymmetrically Fair Rules for an Indivisible Good Problem with a Budget Constraint," Working Papers 610, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:610
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    References listed on IDEAS

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    1. Sprumont, Yves, 2013. "Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1102-1121.
    2. ANDERSSON, Tommy & EHLERS, Lars & SVENSSON, Lars-Gunnar, 2012. "(Minimally) 'epsilon'-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 2012-03, Universite de Montreal, Departement de sciences economiques.
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    8. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson, 2012. "(Minimally) ?-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 04-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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    14. Andersson, Tommy & Svensson, Lars-Gunnar, 2008. "Non-manipulable assignment of individuals to positions revisited," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 350-354, November.
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    Cited by:

    1. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson, 2012. "(Minimally) ?-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 04-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    2. Alfredo Valencia-Toledo & Juan Vidal-Puga, 2020. "Reassignment-proof rules for land rental problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 173-193, March.
    3. Alfredo Valencia-Toledo & Juan Vidal-Puga, 2020. "A sequential bargaining protocol for land rental arrangements," Review of Economic Design, Springer;Society for Economic Design, vol. 24(1), pages 65-99, June.
    4. Arias María Alejandra & Ibáñez Ana María & Querubin Pablo, 2014. "The Desire to Return during Civil War: Evidence for Internally Displaced Populations in Colombia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(1), pages 209-233, January.
    5. Ana María Ibá-ez, 2014. "Growth in forced displacement: cross-country, sub-national and household evidence on potential determinants," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 13, pages 350-387, Edward Elgar Publishing.
    6. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2014. "Least manipulable Envy-free rules in economies with indivisibilities," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 43-49.
    7. Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2015. "Non-manipulable rules for land rental problems," MPRA Paper 67334, University Library of Munich, Germany.
    8. ANDERSSON, Tommy & EHLERS, Lars & SVENSSON, Lars-Gunnar, 2012. "(Minimally) 'epsilon'-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 2012-03, Universite de Montreal, Departement de sciences economiques.

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    More about this item

    Keywords

    fairness; strategy-proofness; indivisible good; land restitution;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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