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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