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

Karol Flores-Szwagrzak*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.

Original languageEnglish
JournalJournal of Economic Theory
Volume160
Pages (from-to)36-55
Number of pages20
ISSN0022-0531
DOIs
Publication statusPublished - 2015
Externally publishedYes

Keywords

  • Claims truncation invariance
  • Composition up
  • Consistency

Cite this