Even allocations for generalised rationing problems

  1. Mariotti, Marco
  2. Villar, Antonio
Revue:
Working papers = Documentos de trabajo: Serie AD

Année de publication: 2003

Número: 10

Type: Working Paper

Résumé

We study an extension of the standard rationing problem, consisting of the allocation of utility losses. We assume neither linearly transferable utilities nor risk averse agents. As a consequence, the utility possibility sets need not be convex or smooth. This problem is referred to as the generalised rationing problem. We introduce the notion of even allocations as a solution concept that extends the random arrival rule to this general scenario. Moreover, we show that, when the feasible set is convex, this solution can be characterised by a suitable reformulation of the axioms that define the Nash bargaining solution.