A Sequential Allocation Problem: The Asymptotic Distribution of Resources

Osorio, Antonio (2014): A Sequential Allocation Problem: The Asymptotic Distribution of Resources.

Abstract

In this paper we consider a sequential allocation problem with n individuals. The first individual can consume any amount of some endowment leaving the remaining for the second individual, and so on. Motivated by the limitations associated with the cooperative or non-cooperative solutions we propose a new approach. We establish some axioms that should be satisfied, representativeness, impartiality, etc. The result is a unique asymptotic allocation rule. It is shown for n=2,3,4, and a claim is made for general n. We show that it satisfies a set of desirable properties.

• Item Type: MPRA Paper
• Language: English
• Keywords: Sequential allocation rule, River sharing problem, Cooperative and non-cooperative games, Dictator and ultimatum games.
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C79 - Other; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions

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