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Efficient Egalitarian Equivalent Allocations over a Single Good

  • Marco LiCalzi


    (Department of Applied Mathematics, University of Venice)

  • Antonio Nicolo


    (Department of Economics, University of Padua)

This paper studies efficient and egalitarian allocations over a single heterogeneous and infinitely divisible good. We prove the existence of such allocations using only measure-theoretic arguments. Under the additional assumption of complete information, we identify a sufficient condition on agents' preferences that makes it possible to apply the Pazner-Schmeidler rule for uniquely selecting an efficient egalitarian equivalent allocation. Finally, we exhibit a simple procedure that implements the Pazner-Schmeidler selection in a subgame-perfect equilibrium.

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Paper provided by Department of Applied Mathematics, Università Ca' Foscari Venezia in its series Working Papers with number 152.

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Length: 22 pages
Date of creation: Jun 2007
Date of revision:
Publication status: Published in Economic Theory 40, 2009, 27-45
Handle: RePEc:vnm:wpaper:152
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  1. Massimo Marinacci & Fabio Maccheroni, 2002. "How to cut a pizza fairly: fair division with descreasing marginal evaluations," ICER Working Papers - Applied Mathematics Series 23-2002, ICER - International Centre for Economic Research.
  2. repec:tpr:qjecon:v:92:y:1978:i:4:p:671-87 is not listed on IDEAS
  3. Crawford, Vincent P, 1979. "A Procedure for Generating Pareto-Efficient Egalitarian-Equivalent Allocations," Econometrica, Econometric Society, vol. 47(1), pages 49-60, January.
  4. Berliant, M.C. & Dunz, K., 1991. "A Foundation of Location Theory : Exstence of Equilibrium, the Welfare Theorems and Core," RCER Working Papers 298, University of Rochester - Center for Economic Research (RCER).
  5. Chambers, Christopher P., 2005. "Allocation rules for land division," Journal of Economic Theory, Elsevier, vol. 121(2), pages 236-258, April.
  6. Sprumont, Yves & Zhou, Lin, 1999. "Pazner-Schmeidler rules in large societies," Journal of Mathematical Economics, Elsevier, vol. 31(3), pages 321-339, April.
  7. Akin, Ethan, 1995. "Vilfredo Pareto cuts the cake," Journal of Mathematical Economics, Elsevier, vol. 24(1), pages 23-44.
  8. Thomson, William, 2005. "Divide-and-permute," Games and Economic Behavior, Elsevier, vol. 52(1), pages 186-200, July.
  9. Berliant, Marcus & Thomson, William & Dunz, Karl, 1992. "On the fair division of a heterogeneous commodity," Journal of Mathematical Economics, Elsevier, vol. 21(3), pages 201-216.
  10. Elisha A. Pazner & David Schmeidler, 1975. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," Discussion Papers 174, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  11. Demange, Gabrielle, 1984. "Implementing Efficient Egalitarian Equivalent Allocations," Econometrica, Econometric Society, vol. 52(5), pages 1167-77, September.
  12. Miceli, Thomas J & Sirmans, C F, 2000. "Partition of Real Estate; or, Breaking Up Is (Not) Hard to Do," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 783-96, June.
  13. Weller, Dietrich, 1985. "Fair division of a measurable space," Journal of Mathematical Economics, Elsevier, vol. 14(1), pages 5-17, February.
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