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Non-Manipulable Division Rules in Claim Problems and Generalizations

Author

Listed:
  • Biung-Ghi Ju

    (Department of Economics, The University of Kansas)

  • Eiichi Miyagawa

    (Department of Economics, Columbia University)

  • Toyotaka Sakai

    (Department of Economics, University of Rochester)

Abstract

This paper studies the problem of allocating divisible resources among agents based on their characteristics. A simple example is the bankruptcy problem, which allocates the liquidation value of a bankrupted firm to creditors based on their claims. By allowing agents' characteristics to be multi-dimensional and varying the meaning of variables in the model, our model subsumes a number of existing and new alloca- tion problems, such as the problems of cost sharing, social choice under transferable utilities, income redistribution, bankruptcy with multiple assets, probability updat- ing, and probability aggregation. We characterize allocation rules under which no group of agents can increase the total amount they receive by transferring their characteristics within the group. A number of existing and new results in specific problems are obtained as corollaries.

Suggested Citation

  • Biung-Ghi Ju & Eiichi Miyagawa & Toyotaka Sakai, 2003. "Non-Manipulable Division Rules in Claim Problems and Generalizations," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200307, University of Kansas, Department of Economics, revised Aug 2005.
    • Handle: RePEc:kan:wpaper:200307
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Reallocation-proofness; proportional rule; no advantageous reallocation; manipulation via merging or splitting.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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