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Axiomatic resource allocation for heterogeneous agents



    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • ROEMER, John E.

    (Yale University)


We analyze a model of resource allocation in which agents' abilities (to transform the resource into an interpersonally comparable outcome) and initial endowments may differ. We impose ethical and operational axioms in this model and characterize some allocation rules as a result of combining these axioms. Two focal (and polar) egalitarian rules are singled out. On the one hand, the rule that allocates the resource equally across agents. On the other hand, the rule tha allocates the resource so that the distribution of final outcomes is exicographically maximized.

Suggested Citation

  • MORENO-TERNERO, Juan D. & ROEMER, John E., 2008. "Axiomatic resource allocation for heterogeneous agents," CORE Discussion Papers 2008018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2008018

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    References listed on IDEAS

    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, March.
    2. Youngsub Chun, 1999. "Equivalence of Axioms for Bankruptcy Problems," Working Paper Series no1, Institute of Economic Research, Seoul National University.
    3. Juan D Moreno-Ternero & John E Roemer, 2006. "Impartiality, Priority, and Solidarity in the Theory of Justice," Econometrica, Econometric Society, vol. 74(5), pages 1419-1427, September.
    4. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare,in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506 Elsevier.
    5. John E. Roemer, 1986. "Equality of Resources Implies Equality of Welfare," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 751-784.
    6. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
    7. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    8. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    9. Sprumont, Yves, 1991. "The Division Problem with Single-Peaked Preferences: A Characterization of the Uniform Allocation Rule," Econometrica, Econometric Society, vol. 59(2), pages 509-519, March.
    10. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    11. Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
    12. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    13. Plott, Charles R, 1973. "Path Independence, Rationality, and Social Choice," Econometrica, Econometric Society, vol. 41(6), pages 1075-1091, November.
    14. Maniquet, François & Sprumont, Yves, 2010. "Sharing the cost of a public good: An incentive-constrained axiomatic approach," Games and Economic Behavior, Elsevier, vol. 68(1), pages 275-302, January.
    15. Youngsub Chun, 1999. "Equivalence of axioms for bankruptcy problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(4), pages 511-520.
    16. Thomson, William, 1983. "Problems of fair division and the Egalitarian solution," Journal of Economic Theory, Elsevier, vol. 31(2), pages 211-226, December.
    17. Roemer, John E., 1988. "Axiomatic bargaining theory on economic environments," Journal of Economic Theory, Elsevier, vol. 45(1), pages 1-31, June.
    18. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
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    Cited by:

    1. Jens Hougaard & Juan Moreno-Ternero & Lars Østerdal, 2013. "Rationing with baselines: the composition extension operator," Annals of Operations Research, Springer, vol. 211(1), pages 179-191, December.
    2. Cano Berlanga, Sebastian & Giménez Gómez, José M. (José Manuel) & Vilella Bach, Misericòrdia, 2015. "Enjoying cooperative games: The R package GameTheory," Working Papers 2072/247653, Universitat Rovira i Virgili, Department of Economics.
    3. JU, Biung-Ghi & MORENO-TERNERO, Juan, 2014. "Fair allocation of disputed properties," CORE Discussion Papers 2014024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Thomson, William, 2015. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: An update," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 41-59.
    5. Biung-Ghi Ju & Juan D. Moreno-Ternero, 2016. "Entitlement theory of justice and end-state fairness in the allocation of goods," UMASS Amherst Economics Working Papers 2016-14, University of Massachusetts Amherst, Department of Economics.
    6. Moreno-Terneroy , Juan D & Østerdal, Lars Peter, 2015. "The implications of equal value of life and prioritarianism for the evaluation of population health," COHERE Working Paper 2015:1, University of Southern Denmark, COHERE - Centre of Health Economics Research.
    7. Thomson, William, 2012. "On The Axiomatics Of Resource Allocation: Interpreting The Consistency Principle," Economics and Philosophy, Cambridge University Press, vol. 28(03), pages 385-421, November.
    8. Giménez Gómez, José M. (José Manuel) & Blanco Gil, Carmen & Sánchez García, Juan Francisco, 2016. "New insights on empirical conflicting claims problems," Working Papers 2072/261530, Universitat Rovira i Virgili, Department of Economics.
    9. Christopher P. Chambers & Juan D. Moreno-Ternero, 2017. "Taxation and poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 153-175, January.
    10. Abizada, Azar & Chen, Siwei, 2014. "A characterization of the uniform rule based on new robustness properties," Mathematical Social Sciences, Elsevier, vol. 71(C), pages 80-85.
    11. Youngsub Chun & Inkee Jang & Biung-Ghi Ju, 2014. "Priority, solidarity and egalitarianism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 577-589, October.
    12. repec:spr:annopr:v:254:y:2017:i:1:d:10.1007_s10479-017-2455-x is not listed on IDEAS
    13. Giménez-Gómez, José-Manuel & Osório, Antonio, 2015. "Why and how to differentiate in claims problems? An axiomatic approach," European Journal of Operational Research, Elsevier, vol. 241(3), pages 842-850.
    14. René Brink & Juan D. Moreno-Ternero, 2017. "The reverse TAL-family of rules for bankruptcy problems," Annals of Operations Research, Springer, vol. 254(1), pages 449-465, July.
    15. Abizada, Azar & Chen, Siwei, 2016. "House allocation when availability of houses may change unexpectedly," Mathematical Social Sciences, Elsevier, vol. 81(C), pages 29-37.
    16. repec:eee:apmaco:v:305:y:2017:i:c:p:381-393 is not listed on IDEAS
    17. repec:spr:sochwe:v:49:y:2017:i:3:d:10.1007_s00355-017-1088-y is not listed on IDEAS
    18. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2018. "Sharing the revenues from broadcasting sport events," Working Papers 18.02, Universidad Pablo de Olavide, Department of Economics.

    More about this item


    resource allocation; egalitarianism; priority; solidarity; composition.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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