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Proportional rules for state contingent claims

Author

Listed:
  • Sinan Ertemel

    (Istanbul Technical University)

  • Rajnish Kumar

    (Queen’s University Belfast)

Abstract

We consider rationing problems where the claims are state contingent. Before the state is realized individuals submit claims for every possible state of the world. A rule distributes resources before the realization of the state of the world. We introduce two natural extensions of the proportional rule in this framework, namely, the ex-ante proportional rule and the ex-post proportional rule, and then we characterize them using standard axioms from the literature.

Suggested Citation

  • Sinan Ertemel & Rajnish Kumar, 2018. "Proportional rules for state contingent claims," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 229-246, March.
    • Handle: RePEc:spr:jogath:v:47:y:2018:i:1:d:10.1007_s00182-017-0585-7
    DOI: 10.1007/s00182-017-0585-7
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    Cited by:

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    2. Zhengxing Zou & Rene van den Brink & Yukihiko Funaki, 2020. "Compromising between the proportional and equal division values: axiomatization, consistency and implementation," Tinbergen Institute Discussion Papers 20-054/II, Tinbergen Institute.
    3. M. G. Fiestras-Janeiro & I. García-Jurado & A. Meca & M. A. Mosquera, 2020. "On benefits of cooperation under strategic power," Annals of Operations Research, Springer, vol. 288(1), pages 285-306, May.
    4. Koster, Maurice & Boonen, Tim J., 2019. "Constrained stochastic cost allocation," Mathematical Social Sciences, Elsevier, vol. 101(C), pages 20-30.
    5. Long, Yan & Sethuraman, Jay & Xue, Jingyi, 2021. "Equal-quantile rules in resource allocation with uncertain needs," Journal of Economic Theory, Elsevier, vol. 197(C).
    6. Chatterjee, Siddharth & Ertemel, Sinan & Kumar, Rajnish, 2023. "Rationing rules for risky claims," Journal of Mathematical Economics, Elsevier, vol. 108(C).
    7. Zou, Zhengxing & van den Brink, René & Funaki, Yukihiko, 2021. "Compromising between the proportional and equal division values," Journal of Mathematical Economics, Elsevier, vol. 97(C).
    8. Schumacher, Johannes M., 2021. "Ex-ante estate division under strong Pareto efficiency," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 10-24.

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    More about this item

    Keywords

    Rationing; Proportional rule; State contingent claims; No advantageous reallocation;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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