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The equitable division of a joint cost (or a jointly produced output) among agents with different shares or types of output (or input) commodities, is a central theme of the theory of cooperative games with transferable utility. Ever since Shapley's seminal contribution in 1953, this question...
Persistent link: https://www.econbiz.de/10014023837
We consider the sharing of the cost of producing a homogeneous good when the technology has variable returns and individuals have arbitrary demands. We give a full analytical description of the family of costsharing methods that allocate costs in proportion to demands when returns are constant,...
Persistent link: https://www.econbiz.de/10014222981
Minimum-cost spanning tree problems are well-known problems in the operations research literature. Some agents, located at different geographical places, want a service provided by a common supplier. Agents will be served through costly connections. Some part of the literature has focused,...
Persistent link: https://www.econbiz.de/10014496126
In this paper we explore the relationship between an equitable distribution of the cost shares in public-good provision on the one hand and the core property of an allocation on the other. In particular we show that it is an inhomogeneous distribution of cost shares that motivates some coalition...
Persistent link: https://www.econbiz.de/10010270530
The literature of welfare-maximising greenhouse gas emission reduction strategies pays remarkably little attention to equity. This paper introduces three ways to consider efficiency and equity simultaneously. The first method, inspired by Kant and Rawls, maximises net present welfare, without...
Persistent link: https://www.econbiz.de/10011608505
We study the assignment of objects to people via lotteries. We consider the implementation of solutions that are based only on ordinal preferences over the objects. There are three natural ways of comparing lotteries, each of which corresponds to a different notion of Nash equilibrium. For each...
Persistent link: https://www.econbiz.de/10014183438
In U.S. presidential elections, voters in noncompetitive states seem not to count — and so have zero voting power, according to the Banzhaf and other voting-power indices — because they cannot influence the outcome in their states. But because the electoral votes of these states are...
Persistent link: https://www.econbiz.de/10014144928
This article proposes three new decompositions of inequality measures, drawn from the framework of cooperative game theory which allows to take into consideration players’ interactions impact rather than players’ contributions to inequality. These innovative approaches are especially suited...
Persistent link: https://www.econbiz.de/10013250337
The Constrained Equal Awards and Equal Losses rules are traditional ways to solve bankruptcy problems. These rules are characterized by two parameters α and β that represent, respectively, the maximum amount a claimant receives, or the maximum amount a claimant loses. Moreover, these rules...
Persistent link: https://www.econbiz.de/10012962816
In this paper, we investigate the possibility of having stable rules for two- sided markets with transferable utility, that satisfy some valuation monotonicity and fairness axioms. Valuation fairness requires that changing the valuation of a buyer for the object of a seller leads to equal...
Persistent link: https://www.econbiz.de/10012911676