The Proportional Random Allocation of Indivisible Units
Indivisible units are randomly allocated among agents with a claim/demand on the resources. The available resources fall short of the sum of individual claims. The proportional method distributes units sequentially, and the probability of receiving a unit at any step is proportional to the unsatisfied claims. We characterize the family of probabilistic rationing methods meeting the three axioms Consistency, Lower and Upper Composition. It contains the proportional method, all deterministic fixed priority methods, and the priority compositions of proportional methods. The proportional method is the only fair method in the family.
|Date of creation:||Nov 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (713) 527-4875
Fax: (713) 285-5278
Web page: http://www.ruf.rice.edu/~econ/papers/index.html
More information through EDIRC
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.:
- Hervé Moulin, 1995.
"On Additive Methods To Share Joint Costs,"
The Japanese Economic Review,
Japanese Economic Association, vol. 46(4), pages 303-332, December.
- Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
- Moulin, Herve, 2001.
"Axiomatic Cost and Surplis-Sharing,"
2001-06, Rice University, Department of Economics.
- Carmen Herrero Blanco, 1998. "- Minimal Rights In Claims Problems," Working Papers. Serie AD 1998-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Young, H Peyton, 1990. "Progressive Taxation and Equal Sacrifice," American Economic Review, American Economic Association, vol. 80(1), pages 253-66, March.
- Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
- Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
- Moulin, Herve & Stong, Richard, 2001. "Fair Queuing and Other Probabilistic Allocation Methods," Working Papers 2000-09, Rice University, Department of Economics.
- Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
When requesting a correction, please mention this item's handle: RePEc:ecl:riceco:2000-02. 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: ()
If references are entirely missing, you can add them using this form.