This paper introduces the Compromise rule for cost sharing problems. This rule fairly combines the equity and the growth-encouraging key principles. The way in which it is described also allows to endogenously identify the agents belonging to a "middle class" depending on how the costs of...

Agents involved in a conflicting claims problem may be concerned with the proportion of their claims that is satisfied, or with the total amount they get. In order to relate both perspectives, we associate to each conflicting claims problem a bargaining-in-proportions set. Then, we obtain a...