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Rationing problems with payoff thresholds

Author

Listed:
  • Pere Timoner

    () (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

  • Josep Maria Izquierdo

    () (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))

Abstract

An extension of the standard rationing model is introduced. Agents are not only identi fied by their respective claims over some amount of a scarce resource, but also by some payoff thresholds. These thresholds introduce exogenous differences among agents (full or partial priority, past allocations, past debts, ...) that may influence the final distribution. Within this framework we provide generalizations of the constrained equal awards rule and the constrained equal losses rule. We show that these generalized rules are dual from each other.We characterize the generalization of the equal awards rule by using the properties of consistency, path-independence and compensated exemption. Finally,we use the duality between rules to characterize the generalization of the equal losses solution.

Suggested Citation

  • Pere Timoner & Josep Maria Izquierdo, 2014. "Rationing problems with payoff thresholds," UB Economics Working Papers 2014/311, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.
  • Handle: RePEc:ewp:wpaper:311web
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    File URL: http://www.ub.edu/ubeconomics/wp-content/uploads/2014/05/311-WEB.pdf
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    References listed on IDEAS

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    1. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2012. "A unifying framework for the problem of adjudicating conflicting claims," Journal of Mathematical Economics, Elsevier, pages 107-114.
    2. 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.
    3. Jens Hougaard & Juan Moreno-Ternero & Lars Østerdal, 2013. "Rationing in the presence of baselines," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, pages 1047-1066.
    4. Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
    5. M. Pulido & P. Borm & R. Hendrickx & N. Llorca & J. Sánchez-Soriano, 2008. "Compromise solutions for bankruptcy situations with references," Annals of Operations Research, Springer, vol. 158(1), pages 133-141, February.
    6. Kaminski, Marek M., 2000. "'Hydraulic' rationing," Mathematical Social Sciences, Elsevier, vol. 40(2), pages 131-155, September.
    7. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    8. Herrero, Carmen & Villar, Antonio, 2001. "The three musketeers: four classical solutions to bankruptcy problems," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 307-328, November.
    9. 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.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Rationing; equal awards rule; equal losses rule; claims problems;

    JEL classification:

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

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