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On the difficulty of budget allocation in claims problems with indivisible items of different prices

Author

Listed:
  • Teresa Estañ

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche.)

  • Natividad Llorca

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche.)

  • Ricardo Martínez

    (Department of Economic Theory and Economic History, University of Granada.)

  • Joaquín Sánchez-Soriano

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche.)

Abstract

In this paper we study the class of claims problems where the amount to be divided is perfectly divisible and claims are made on indivisible units of several items. Each item has a price, and the available amount falls short to be able to cover all the claims at the given prices. We propose several properties that may be of interest in this particular framework. These properties represent the common principles of fairness, efficiency, and non-manipulability. As we show, some combinations of the properties we consider are compatible, others are not. These findings contrast with the usual setting of claims problems (where both the claims and amount to be alloted are divisible).

Suggested Citation

  • Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2020. "On the difficulty of budget allocation in claims problems with indivisible items of different prices," ThE Papers 20/09, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:20/09
    as

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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers20_09.pdf
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    References listed on IDEAS

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