A Model of Resource Redistribution

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: bargain (exchange); resource redistribution (reallocation); Khelli's Theorem; deadlock point; quasi-summator function
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness

References

О.V. Guseva, "Sequence of Exchanges in a Convex Programming Problem," Ekonomika i matematicheskie metody, 1968, Vol. IV, No. 3.

B.N. Pshenichnyi, "Convex Programming in Normalized Space," Kibernetika, 1965, No. 5.

L. Dantser, B. Griunbaum, and V. Kli, Khelli's Theorem, Moscow, "Mir" Publishing House, 1968.

S. Karlin, Mathematical Methods in the Theory of Games, Programming, and Economics, Moscow, "Mir" Publishing House, 1964.

О.V. Guseva, "The Sequence of Exchanges in a Convex Programming Problem," Ekonomika i matematicheskie metody, 1969, Vol. V, No. 6.