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Balanced allocation methods for claims problems with indivisibilities

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  • HERRERO, Carmen
  • MARTINEZ, Ricardo

Abstract

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. We are interested in finding solutions satisfying robustness and fairness properties. To do that, we define the M-down methods, which are the unique robust (composition down and consistency) and fair (balancedness or conditional full compensation ) rules. Besides, we also establish the relationships between these M-down methods and the constrained equal awards rule.

Suggested Citation

  • HERRERO, Carmen & MARTINEZ, Ricardo, 2006. "Balanced allocation methods for claims problems with indivisibilities," LIDAM Discussion Papers CORE 2006066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2006066
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    Cited by:

    1. Vito Fragnelli & Stefano Gagliardo & Fabio Gastaldi, 2014. "Integer solutions to bankruptcy problems with non-integer claims," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(3), pages 892-933, October.
    2. Carmen Herrero & Ricardo Martínez, 2011. "Allocation problems with indivisibilities when preferences are single-peaked," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 2(4), pages 453-467, December.
    3. José-manuel Giménez-gómez & Cori Vilella, 2017. "Recursive methods for discrete claims problems," Economics Bulletin, AccessEcon, vol. 37(3), pages 1653-1665.
    4. Péter Csóka & P. Jean-Jacques Herings, 2018. "Decentralized Clearing in Financial Networks," Management Science, INFORMS, vol. 64(10), pages 4681-4699, October.
    5. Tanguiane, Andranick S., 2023. "Apportionment in times of digitalization," Working Paper Series in Economics 161, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    6. Flores-Szwagrzak, Karol, 2015. "Priority classes and weighted constrained equal awards rules for the claims problem," Journal of Economic Theory, Elsevier, vol. 160(C), pages 36-55.
    7. Martínez, Ricardo & Moreno-Ternero, Juan D., 2022. "Compensation and sacrifice in the probabilistic rationing of indivisible units," European Journal of Operational Research, Elsevier, vol. 302(2), pages 740-751.
    8. Carmen Herrero & Ricardo Martínez, 2008. "Up methods in the allocation of indivisibilities when preferences are single-peaked," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(2), pages 272-283, December.
    9. Sanjay Bhattacherjee & Palash Sarkar, 2023. "On Using Proportional Representation Methods as Alternatives to Pro-Rata Based Order Matching Algorithms in Stock Exchanges," Papers 2303.09652, arXiv.org, revised Nov 2023.
    10. Thomson, William, 2015. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: An update," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 41-59.
    11. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2020. "On the difficulty of budget allocation in claims problems with indivisible items of different prices," ThE Papers 20/09, Department of Economic Theory and Economic History of the University of Granada..
    12. Siwei Chen, 2015. "Systematic favorability in claims problems with indivisibilities," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(2), pages 283-300, February.
    13. Csoka, Péter & Herings, P. Jean-Jacques, 2016. "Decentralized Clearing in Financial Networks (RM/16/005-revised-)," Research Memorandum 037, Maastricht University, Graduate School of Business and Economics (GSBE).
    14. Vito Fragnelli & Gianfranco Gambarelli, 2014. "Further open problems in cooperative games," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 24(4), pages 51-62.
    15. Vito Fragnelli & Fabio Gastaldi, 2017. "Remarks on the integer Talmud solution for integer bankruptcy problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(1), pages 127-163, April.

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    More about this item

    Keywords

    claims problems; indivisibilities; monotonic standard; balancedness; down method;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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