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Lower bounds rule!

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  • LUTTENS, Roland Iwan

    (Ghent University, SHERPPA, B-9000 Ghent, Belgium; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

Abstract

We propose two axioms that introduce lower bounds into resource monotonicity requirements for rules for the problem of adjudicating conflicting claims. Suppose the amount to divide increases. The first axiom requires that two claimants whose lower bound changes equally experience an equal change in awards. The second axiom requires that extra resources are divided only among those claimants who experience a strictly positive change in their lower bound. We show that, in the two-claimant case, Concede-and-Divide is the only rule that satisfies both axioms when the axioms are defined over a large set of lower bounds that include the minimal rights lower bound and the secured lower bound. We also show that, in the n-claimant case where at least one claimant claims the total amount, the Minimal Overlap rule is the only rule that satisfies both axioms when the axioms are defined over the secured lower bound.

Suggested Citation

  • LUTTENS, Roland Iwan, 2010. "Lower bounds rule!," LIDAM Discussion Papers CORE 2010069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2010069
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2010.html
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    References listed on IDEAS

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    More about this item

    Keywords

    claims problems; lower bounds; concede-and-divide; minimal overlap rule;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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