Balanced allocation methods for claims problems with indivisibilities
We study claims problems in which a certain amount of indivisible units (of an homogeneous good) has to be distributed among a group of agents, when this amount is not enough to fully satisfy agents’ demands. Our aim is to find solutions fulfilling procedural and fairness properties. To do that, we define the M-down methods, which are the unique robust (composition down and consistency) and fair (balancedness and conditional full compensation) rules. Besides, we also establish the relationship between these M-down methods and the constrained equal awards rule.
KeywordsBankruptcy Problem Claim Problem Small Claim Fairness Property Aggregate Loss
Unable to display preview. Download preview PDF.
- Moulin H (2002) Axiomatic cost and surplus-sharing. In: Arrow KJ, Sen AK, Suzumura K (eds) Handbook of social choice and welfare. North-Holland, AmsterdamGoogle Scholar
- Thomson W (1998) Consistency and its converse: an introduction. Rochester Center for Economics Research, 448Google Scholar
- Young HP (1994) Equity: theory and practice. Princeton University Press, PrincetonGoogle Scholar