This paper investigates the use of egalitarian criteria to select allocations in bankruptcy problems. In our work, we characterize the sets of Lorenz maximal elements for these problems. We show that the allocation selected by the Proportional Rule is the only allocation that belongs to all...

In this paper we experimentally test Schelling's (1971) segregation model and confirm the striking result of segregation. In addition, we extend Schelling's model theo- retically by adding strategic behavior and moving costs. We obtain a unique subgame perfect equilibrium in which rational...

This paper applies non-parametric techniques to examine the evolution of the entire distribution of regional productivity in the European Union between 1977 and 1999. In addition, we study the importance of the respective roles played by regional and sectoral factors in the convergence of...

This article shows the results of experiments where subjects play the Schelling’s spatial proximity model. Two types of experiments are conducted: one in which choices are made sequentially and a variation of the first where the decision making is simultaneous. The results of the...

We examine the way in which differences in language and culture may affect direct investment decisions. We use a discrete choice approach to model the location decisions of multinationals in which cultural links, language differences, distance and market access are accounted for. This model is...

The process of computing the nucleolus of arbitrary transferable utility games is notoriously hard. A number of papers have appeared in which the nucleolus is computed by an algorithm in which either one or a huge number of huge linear programs have to be solved. <p>We show that on the class of...</p>

In this paper we introduce and study the w-Coalitional Lorenz Solutions to identify the similarities and differences between the prenucleolus and the Shapley value. The similarity is that they both use egalitarian criteria over coalitions. The two main differences are: the prenucleolus and the...