Why people reach intermediate agreements? Axiomatic and strategic justifications
As Roemer (1986) points out, things become more interesting once we include information. In this paper, following the line started by Jiménez-Gómez and Marco-Gil (2008), we define both a lower and an upper bounds on awards in the framework of the Lorenz-Bifocal Bankruptcy Problem (Gadea et al. (2010)), which is an extended bankruptcy problem enriched with a Commonly Accepted Equity Principles set and the idea of treat everybody as evenly as possible (Dutta and Ray (1989) and Arin (2007), among others). Moreover, we contribute with the definition of the Lorenz Double Boundedness Recursive procedure, which consists on the recursive imposition of both bounds, providing a natural way of justifying the convex combination of bankruptcy rules. Specifically, we retrieve the midpoint of extreme and opposite well known ways of distributing the resource. Finally, we complete our analysis from the strategic viewpoint, obtaining similar results.
|Date of creation:||Sep 2010|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: |
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
References listed on IDEAS
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.:
- 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.
- J. Arin, 2007. "Egalitarian Distributions In Coalitional Models," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 47-57.
- William Thomson, 2007.
"Lorenz rankings of rules for the adjudication of conflicting claims,"
RCER Working Papers
538, University of Rochester - Center for Economic Research (RCER).
- William Thomson, 2012. "Lorenz rankings of rules for the adjudication of conflicting claims," Economic Theory, Springer, vol. 50(3), pages 547-569, August.
- Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
- Diego Dominguez, 2007. "Lower bounds and recursive methods for the problem of adjudicating conflicting claims," Working Papers 0705, Centro de Investigacion Economica, ITAM.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2010-29. 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: (Departamento de Edición)
If references are entirely missing, you can add them using this form.