Egalitarianism under earmark constraints

Date

2013

Authors

Bochet, O.
İlkılıç, R.
Moulin, H.

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Source Title

Journal of Economic Theory

Print ISSN

0022-0531

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Publisher

Elsevier

Volume

148

Issue

2

Pages

535 - 562

Language

English

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Abstract

Agents with single-peaked preferences share a resource coming from different suppliers; each agent is connected to only a subset of suppliers. Examples include workload balancing, sharing earmarked funds, and rationing utilities after a storm.

Unlike in the one supplier model, in a Pareto optimal allocation agents who get more than their peak from underdemanded suppliers, coexist with agents who get less from overdemanded suppliers.

Our Egalitarian solution is the Lorenz dominant Pareto optimal allocation. It treats agents with equal demands as equally as the connectivity constraints allow. Together, Strategyproofness, Pareto Optimality, and Equal Treatment of Equals, characterize our solution.

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