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A Sequential Allocation Problem: The Asymptotic Distribution of Resources

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  • Osório, António (António Miguel)

Abstract

In this paper, we consider a sequential allocation problem with n individuals. The first individual can consume any amount of a resource, leaving the remainder for the second individual, and so on. Motivated by the limitations associated with the cooperative or non-cooperative solutions, we propose a new approach from basic definitions of representativeness and equal treatment. The result is a unique asymptotic allocation rule for any number of individuals. We show that it satisfies a set of desirable properties. Keywords: Sequential allocation rule, River sharing problem, Cooperative and non-cooperative games, Dictator and ultimatum games. JEL classification: C79, D63, D74.

Suggested Citation

  • Osório, António (António Miguel), 2016. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/266574, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/266574
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    More about this item

    Keywords

    Jocs; Teoria de; Distribució asimptòtica (Teoria de la probabilitat); Decisió; Presa de (Estadística); 33 - Economia;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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