IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/12776.html
   My bibliography  Save this paper

Minimizing regret when dissolving a partnership

Author

Listed:
  • Athanassoglou, Stergios
  • Brams, Steven J.
  • Sethuraman, Jay

Abstract

We study the problem of dissolving an equal-entitlement partnership when the objective is to minimize maximum regret. We initially focus on the family of linear-pricing mechanisms and derive regret-optimizing strategies. We also demonstrate that there exist linear-pricing mechanisms satisfying ex-post efficiency. Next, we analyze a binary-search mechanism which is ex-post individually rational. We discuss connections with the standard Bayesian-Nash framework for both linear and binary-search mechanisms. On a more general level, we show that if entitlements are unequal, ex-post efficiency and ex-post individual rationality impose significant restrictions on permissible mechanisms. In particular, they rule out both linear and binary-search mechanisms.

Suggested Citation

  • Athanassoglou, Stergios & Brams, Steven J. & Sethuraman, Jay, 2008. "Minimizing regret when dissolving a partnership," MPRA Paper 12776, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12776
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/12776/1/MPRA_paper_12776.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yigal Gerchak & J. David Fuller, 1992. "Optimal Value Declaration in "Buy-Sell" Situations," Management Science, INFORMS, vol. 38(1), pages 48-56, January.
    2. Georgia Perakis & Guillaume Roels, 2008. "Regret in the Newsvendor Model with Partial Information," Operations Research, INFORMS, vol. 56(1), pages 188-203, February.
    3. Linhart, P. B. & Radner, R., 1989. "Minimax-regret strategies for bargaining over several variables," Journal of Economic Theory, Elsevier, vol. 48(1), pages 152-178, June.
    4. Kalyan Chatterjee & William Samuelson, 1983. "Bargaining under Incomplete Information," Operations Research, INFORMS, vol. 31(5), pages 835-851, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ludwig Ensthaler & Thomas Giebe & Jianpei Li, 2014. "Speculative partnership dissolution with auctions," Review of Economic Design, Springer;Society for Economic Design, vol. 18(2), pages 127-150, June.
    2. Stefano Galavotti & Nozomu Muto & Daisuke Oyama, 2011. "On efficient partnership dissolution under ex post individual rationality," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 48(1), pages 87-123, September.
    3. Van Essen, Matt & Wooders, John, 2016. "Dissolving a partnership dynamically," Journal of Economic Theory, Elsevier, vol. 166(C), pages 212-241.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernhard Kasberger & Karl H. Schlag, 2024. "Robust Bidding in First-Price Auctions: How to Bid Without Knowing What Others Are Doing," Management Science, INFORMS, vol. 70(7), pages 4219-4235, July.
    2. Bernhard Kasberger & Karl H. Schlag, 2017. "Robust Bidding in First-Price Auctions: How to Bid without Knowing what Otheres are Doing," Vienna Economics Papers 1707, University of Vienna, Department of Economics.
    3. Kasberger, Bernhard & Woodward, Kyle, 2021. "Bidding in Multi-Unit Auctions under Limited Information," MPRA Paper 111185, University Library of Munich, Germany.
    4. Bernhard Kasberger, 2022. "An Equilibrium Model of the First-Price Auction with Strategic Uncertainty: Theory and Empirics," Papers 2202.07517, arXiv.org, revised Mar 2022.
    5. Lampros Boukas & Diogo Pinheiro & Alberto Pinto & Stylianos Xanthopoulos & Athanasios Yannacopoulos, 2009. "Behavioural and Dynamical Scenarios for Contingent Claims Valuation in Incomplete Markets," Papers 0903.3657, arXiv.org.
    6. Renou, Ludovic & Schlag, Karl H., 2010. "Minimax regret and strategic uncertainty," Journal of Economic Theory, Elsevier, vol. 145(1), pages 264-286, January.
    7. Lau, Stephanie, 2011. "Investment incentives in bilateral trading," Games and Economic Behavior, Elsevier, vol. 73(2), pages 538-552.
    8. Martín Egozcue & Xu Guo & Wing-Keung Wong, 2015. "Optimal output for the regret-averse competitive firm under price uncertainty," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 279-295, December.
    9. Andrés Abeliuk & Gerardo Berbeglia & Pascal Van Hentenryck, 2015. "Bargaining Mechanisms for One-Way Games," Games, MDPI, vol. 6(3), pages 1-21, September.
    10. Jean-Michel Benkert, 2015. "Bilateral trade with loss-averse agents," ECON - Working Papers 188, Department of Economics - University of Zurich, revised Jul 2022.
    11. Serrano, Breno & Minner, Stefan & Schiffer, Maximilian & Vidal, Thibaut, 2024. "Bilevel optimization for feature selection in the data-driven newsvendor problem," European Journal of Operational Research, Elsevier, vol. 315(2), pages 703-714.
    12. Carrillo, Juan D. & Palfrey, Thomas R., 2011. "No trade," Games and Economic Behavior, Elsevier, vol. 71(1), pages 66-87, January.
    13. Rustichini, Aldo & Satterthwaite, Mark A & Williams, Steven R, 1994. "Convergence to Efficiency in a Simple Market with Incomplete Information," Econometrica, Econometric Society, vol. 62(5), pages 1041-1063, September.
    14. Peng Hu & Feng Chu & Yunfei Fang & Peng Wu, 2022. "Novel distribution-free model and method for stochastic disassembly line balancing with limited distributional information," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1423-1446, July.
    15. Gayer Gabrielle & Segev Ella, 2012. "Revealing Private Information in Bargaining," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-34, December.
    16. Qiu, Ruozhen & Sun, Minghe & Lim, Yun Fong, 2017. "Optimizing (s, S) policies for multi-period inventory models with demand distribution uncertainty: Robust dynamic programing approaches," European Journal of Operational Research, Elsevier, vol. 261(3), pages 880-892.
    17. Andersson, Jonas & Jörnsten, Kurt & Nonås, Sigrid Lise & Sandal, Leif & Ubøe, Jan, 2013. "A maximum entropy approach to the newsvendor problem with partial information," European Journal of Operational Research, Elsevier, vol. 228(1), pages 190-200.
    18. Jungho Park & Hadi El-Amine & Nevin Mutlu, 2021. "An Exact Algorithm for Large-Scale Continuous Nonlinear Resource Allocation Problems with Minimax Regret Objectives," INFORMS Journal on Computing, INFORMS, vol. 33(3), pages 1213-1228, July.
    19. Alexander Kritikos, 2006. "The Impact of Compulsory Arbitration on Bargaining Behavior: An Experimental Study," Economics of Governance, Springer, vol. 7(3), pages 293-315, August.
    20. Meng Qi & Ying Cao & Zuo-Jun (Max) Shen, 2022. "Distributionally Robust Conditional Quantile Prediction with Fixed Design," Management Science, INFORMS, vol. 68(3), pages 1639-1658, March.

    More about this item

    Keywords

    Partnership dissolution; minimax regret; fair division; allocative efficiency;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:12776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.