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Atkinson–Shapley rules for TU-games: on the trade-off between efficiency and inequality

Author

Listed:
  • Walter Briec

    (LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia)

  • Marc Dubois

    (CHROME - Détection, évaluation, gestion des risques CHROniques et éMErgents (CHROME) - Nîmes Université - UNIMES - Nîmes Université, UMay - Université de Mayotte (UMay), UM6P - Université Mohammed VI Polytechnique = Mohammed VI Polytechnic University [Ben Guerir])

  • Stéphane Mussard

    (CHROME - Détection, évaluation, gestion des risques CHROniques et éMErgents (CHROME) - Nîmes Université - UNIMES - Nîmes Université)

Abstract

A family of single-parameter Atkinson–Shapley rules for TU-games is introduced. These rules are marginalist with a specific transformation of the marginal contributions depending on a parameter, which assesses how equality among payoffs fairly offsets inefficiency in the redistribution. This normative content is similar in spirit to that of Atkinsonian social welfare functions. It is shown that the higher the value of the parameter (being positive), the greater the social welfare of the resulting distribution of payoffs according to the so-called generalized Lorenz criterion. The Atkinson–Shapley rules are relevant to propose solutions in cases where redistributed payoffs must exceed the worth of the grand coalition. This point is illustrated through an example involving a public pension system with unfunded liabilities.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Walter Briec & Marc Dubois & Stéphane Mussard, 2025. "Atkinson–Shapley rules for TU-games: on the trade-off between efficiency and inequality," Post-Print hal-04878170, HAL.
  • Handle: RePEc:hal:journl:hal-04878170
    DOI: 10.1007/s11238-024-10019-7
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    References listed on IDEAS

    as
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