An application of the Shapley value to fair division with money
Article Abstract:
The division of resources among agents wherein each receives a monetary transfer and a nonnegative share is examined in the context of quasi-linear utilities and feasible monetary compensations. Such a fair division of unproduced goods satisfies the axioms of resource monotonicity, stand alone test, individual rationality and population solidarity when the Shapely value of the surplus sharing game is applied. Given that every agent consumes only one good, the optimal allocation of indivisible goods represents such a case.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1992
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Serial cost sharing
Article Abstract:
A study was done to analyze a proposed cost sharing formula. The study assumes that a fixed group of n agents share a single input, an output technology with decreasing returns. Costs are assigned in incremental terms according to the degree of demand for output. The study shows that serial cost sharing is dominance solvable for agents with convex and monotonic preferences. Such sharing strategy leads to an equilibrium in coalitional deviations.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1992
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Federal fiscal constitutions: risk sharing and moral hazard
Article Abstract:
The collective decision of fiscal policy in a federal government with two levels is examined. Local policies affect individuals and influence the probability of aggregate shocks. Federal policies adopt international risks. Federal risk-sharing may motivate local governments implement policies which increase local risk. This tradeoff is examined under alternative fiscal constitutions. The European Community is compared with the US federal system.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1996
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