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Sharing an increase of the rent fairly

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  • Rodrigo A. Velez

    (Texas A&M University, Department of Economics)

Abstract

We characterize the family of non-contestable budget- monotone rules for the allocation of objects and money as those obtained by maximizing a min social welfare function among all non-contestable allocations. We provide three additional seemingly independent approaches to construct these rules. We present three applications of this characterization. First, we show that one can "rectify" any non-contestable rule without losing non-contestability. Second, we characterize the preferences that admit, for each budget, a non-contestable allocation satisfying a minimal or maximal individual consumption of money constraint. Third, we study continuity properties of the non-contestable correspondence.

Suggested Citation

  • Rodrigo A. Velez, 2015. "Sharing an increase of the rent fairly," Working Papers 20151201-001, Texas A&M University, Department of Economics.
    • Handle: RePEc:txm:wpaper:20151201-001
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    References listed on IDEAS

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    1. Fujinaka, Yuji & Wakayama, Takuma, 2015. "Maximal manipulation of envy-free solutions in economies with indivisible goods and money," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 165-185.
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    12. Nicolò, Antonio & Velez, Rodrigo A., 2017. "Divide and compromise," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 100-110.
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    17. Velez, Rodrigo A., 2011. "Are incentives against economic justice?," Journal of Economic Theory, Elsevier, vol. 146(1), pages 326-345, January.
    18. William Thomson, 1983. "The Fair Division of a Fixed Supply Among a Growing Population," Mathematics of Operations Research, INFORMS, vol. 8(3), pages 319-326, August.
    19. Velez, Rodrigo A., 2016. "Fairness and externalities," Theoretical Economics, Econometric Society, vol. 11(1), January.
    20. Eric S. Maskin, 1987. "On the Fair Allocation of Indivisible Goods," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, chapter 11, pages 341-349, Palgrave Macmillan.
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    Cited by:

    1. Rodrigo A. Velez, 2017. "Equitable rent division," Working Papers 20170818-001, Texas A&M University, Department of Economics.
    2. Rodrigo A. Velez, 2022. "A polynomial algorithm for maxmin and minmax envy-free rent division on a soft budget," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(1), pages 93-118, July.
    3. Sheida Etemadidavan & Andrew J. Collins, 2021. "An Empirical Distribution of the Number of Subsets in the Core Partitions of Hedonic Games," SN Operations Research Forum, Springer, vol. 2(4), pages 1-20, December.
    4. Velez, Rodrigo A., 2023. "Equitable rent division on a soft budget," Games and Economic Behavior, Elsevier, vol. 139(C), pages 1-14.
    5. Nicolò, Antonio & Velez, Rodrigo A., 2017. "Divide and compromise," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 100-110.
    6. Rodrigo A. Velez, 2019. "Expressive mechanisms for equitable rent division on a budget," Papers 1902.02935, arXiv.org, revised Apr 2020.

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    More about this item

    Keywords

    solidarity; allocation of objects and money; non contestable allocations;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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