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On recursive solutions to simple allocation problems

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  • Özgür Kıbrıs
Abstract
We propose and axiomatically analyze a class of rational solutions to simple allocation problems where a policy-maker allocates an endowment $$E$$ among $$n$$ agents described by a characteristic vector c. We propose a class of recursive rules which mimic a decision process where the policy-maker initially starts with a reference allocation of $$E$$ in mind and then uses the data of the problem to recursively adjust his previous allocation decisions. We show that recursive rules uniquely satisfy rationality, c-continuity, and other-c monotonicity. We also show that a well-known member of this class, the Equal Gains rule, uniquely satisfies rationality, c-continuity, and equal treatment of equals. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Özgür Kıbrıs, 2013. "On recursive solutions to simple allocation problems," Theory and Decision, Springer, vol. 75(3), pages 449-463, September.
    • Handle: RePEc:kap:theord:v:75:y:2013:i:3:p:449-463
    DOI: 10.1007/s11238-013-9359-2
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    References listed on IDEAS

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    Cited by:

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    3. 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.
    4. 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.
    5. Stovall, John E., 2020. "Equal sacrifice taxation," Games and Economic Behavior, Elsevier, vol. 121(C), pages 55-75.
    6. Patrick Harless, 2017. "Endowment additivity and the weighted proportional rules for adjudicating conflicting claims," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(3), pages 755-781, March.

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