Priority Classes and Weighted Constrained Equal Awards Rules for the Claims Problem

Karol Flores-Szwagrzak*

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Abstrakt

We revisit the "claims problem" (O'Neill, 1982), where a group of individuals have claims on a resource but there is not enough of it to honor all of the claims. We characterize the rules satisfying three well-known invariance axioms: consistency, composition up, and claims truncation invariance. They are priority-augmented versions of the standard weighted constrained equal awards rules, also known as weighted gains methods (Moulin, 2000): individuals are sorted into priority classes; the resource is distributed among the individuals in the first priority class using a weighted constrained equal awards rule; if some of the resource is left over, then it is distributed among the individuals in the second priority class, again using a weighted constrained equal awards rule; the distribution carries on in this way until the resource is exhausted. Our characterization extends to a generalized version of the claims problem where there are multiple divisible and indivisible resources and individuals have claims on each of these.
OriginalsprogEngelsk
TidsskriftJournal of Economic Theory
Vol/bind160
Sider (fra-til)36-55
Antal sider20
ISSN0022-0531
DOI
StatusUdgivet - 2015
Udgivet eksterntJa

Emneord

  • Consistency
  • Composition up
  • Claims truncation invariance

Citationsformater