Munich Personal RePEc Archive

A Model of Resource Redistribution

Polterovich, Victor (1971): A Model of Resource Redistribution. Published in: Matekon , Vol. 7, No. 3 (1971): pp. 245-262.

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Abstract

Consider an economy with n resources (goods) and m agents, and let initial resource allocation be given. We ask if it is possible to build a mutually beneficial bargaining sequence that approaches an optimal resource allocation even though a) only k ≤ n agents participates at each step of the bargaining sequence, and b) they use only information about participants of the exchange. We answer this question using a new concept of quasi - summator functions. In particular, the answer is positive if k > n and all agent utility functions are concave.

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