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A Certain Notion of Strategy Freedom under Retail Competition in Claims Problems

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  • Kentar^o Yamamoto

Abstract

A new axiom for rules for claims problems is introduced. It strengthens a condition studied in supply chain literature, which forces rules to disincentivize order inflation under capacity allocation and retail competition. The relevance of the axiom is further demonstrated by one of the main results of the present article: it characterizes the weighted constrained equal awards rule together with known natural axioms.

Suggested Citation

  • Kentar^o Yamamoto, 2024. "A Certain Notion of Strategy Freedom under Retail Competition in Claims Problems," Papers 2412.19506, arXiv.org.
    • Handle: RePEc:arx:papers:2412.19506
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    2. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    3. Soo-Haeng Cho & Christopher S. Tang, 2014. "Technical Note---Capacity Allocation Under Retail Competition: Uniform and Competitive Allocations," Operations Research, INFORMS, vol. 62(1), pages 72-80, February.
    4. Zhixin Liu, 2012. "Equilibrium analysis of capacity allocation with demand competition," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(3‐4), pages 254-265, April.
    5. Hervé Moulin, 2000. "Priority Rules and Other Asymmetric Rationing Methods," Econometrica, Econometric Society, vol. 68(3), pages 643-684, May.
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