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Rationing with Baselines: The Composition Extension Operator

Author

Listed:
  • Jens Leth Hougaard

    () (Department of Food and Resource Economics, University of Copenhagen)

  • Juan D. Moreno-Ternero

    (Department of Economics, Universidad Pablo de Olavide)

  • Lars Peter Østerdal

    () (Department of Business and Economics, University of Southern Denmark)

Abstract

We introduce a new operator for general rationing problems in which, besides conflicting claims, individual baselines play an important role in the rationing process. The operator builds onto ideas of composition, which are not only frequent in rationing, but also in related problems such as bargaining, choice, and queuing. We characterize the operator and show how it preserves some standard axioms in the literature on rationing. We also relate it to recent contributions in such literature.

Suggested Citation

  • Jens Leth Hougaard & Juan D. Moreno-Ternero & Lars Peter Østerdal, 2012. "Rationing with Baselines: The Composition Extension Operator," MSAP Working Paper Series 08_2012, University of Copenhagen, Department of Food and Resource Economics.
  • Handle: RePEc:foi:msapwp:08_2012
    as

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    References listed on IDEAS

    as
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    2. Hokari, Toru & Thomson, William, 2008. "On properties of division rules lifted by bilateral consistency," Journal of Mathematical Economics, Elsevier, vol. 44(11), pages 1057-1071, December.
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    4. 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.
    5. 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, vol. 48(2), pages 107-114.
    6. 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.
    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. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
    9. Jens Leth Hougaard & Juan D. Moreno-Ternero & Lars Peter Østerdal, 2010. "Baseline Rationing," MSAP Working Paper Series 05_2010, University of Copenhagen, Department of Food and Resource Economics.
    10. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    11. Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
    12. 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.
    13. Moreno-Ternero, Juan D. & Roemer, John E., 2012. "A common ground for resource and welfare egalitarianism," Games and Economic Behavior, Elsevier, vol. 75(2), pages 832-841.
    14. Plott, Charles R, 1973. "Path Independence, Rationality, and Social Choice," Econometrica, Econometric Society, vol. 41(6), pages 1075-1091, November.
    15. 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, vol. 40(4), pages 1047-1066, April.
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    Cited by:

    1. Juan D. Moreno-Ternero, 2017. "A Talmudic Approach to Bankruptcy Problems," Working Papers 17.01, Universidad Pablo de Olavide, Department of Economics.
    2. 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.
    3. Pere Timoner Lledó & Josep Maria Izquierdo Aznar, 2015. "Generalized rationing problems and solutions," UB Economics Working Papers 2015/329, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.
    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. Timoner, Pere & Izquierdo, Josep M., 2016. "Rationing problems with ex-ante conditions," Mathematical Social Sciences, Elsevier, vol. 79(C), pages 46-52.
    6. 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.

    More about this item

    Keywords

    rationing; baselines; claims; operator; composition;

    JEL classification:

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

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