Sharing a common resource with concave benefits
A group of agents enjoy concave and single-peak benefit functions from consuming a shared resource. They also value money (transfers). The resource is scarce in the sense that not everybody can consume its peak. The paper characterizes the unique (resource and money) allocation that is efficient, incentive compatible and equal-sharing individual rational. It can be implemented (i) by selling the resource or taxing extraction and redistributing the money collected equally, or (ii) by assigning property rights on equal shares in a competitive market. Next, the paper posits an allocation that is incentive compatible, individual rational and assigns to every agent no more than its peak benefit.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (0033) 4 76 82 54 39
Web page: http://www.grenoble.inra.fr/
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.:
- Moulin, H., 1988.
"Welfare Bounds In The Fair Division Problem,"
UFAE and IAE Working Papers
106-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- SCHMEIDLER, David & VIND, Karl, .
"Fair net trades,"
CORE Discussion Papers RP
-131, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ching, Stephen, 1992. "A simple characterization of the uniform rule," Economics Letters, Elsevier, vol. 40(1), pages 57-60, September.
- H. R. Varian, 1973.
"Equity, Envy and Efficiency,"
115, Massachusetts Institute of Technology (MIT), Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:gbl:wpaper:200601. 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: (Agnès Vertier)
If references are entirely missing, you can add them using this form.