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Baseline Rationing

Author

Listed:
  • Jens L. Hougaard

    () (University of Copenhagen)

  • Juan D. Moreno-Ternero

    () (Department of Economic Theory, Universidad de Málaga)

  • Lars P. Østerdal

    () (University of Copenhagen)

Abstract

We analyze a general model of rationing in which agents have baselines, in addition to claims against the (insufficient) endowment of the good to be allocated. Many real-life problems fit this extended model (e.g., bankruptcy with prioritized claims, resource allocation in the public health care sector, water distribution in drought periods). We introduce (and characterize) a natural class of allocation methods for such problems. Any method within the class is associated with a rule in the standard rationing model, and we show that if the latter obeys some properties reflecting principles of impartiality, priority and solidarity, the former obeys them too.

Suggested Citation

  • Jens L. Hougaard & Juan D. Moreno-Ternero & Lars P. Østerdal, 2011. "Baseline Rationing," Working Papers 2011-04, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
  • Handle: RePEc:mal:wpaper:2011-4
    as

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    File URL: http://webdeptos.uma.es/THEconomica/malagawpseries/Papers/METCwp2011-4.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. 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.

    More about this item

    Keywords

    rationing; baselines; claims; priority; solidarity;

    JEL classification:

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

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