Reallocation of an Infinitely Divisible Good

Details

Serval ID
serval:BIB_CA0EDC35392A
Type
Article: article from journal or magazin.
Collection
Publications
Title
Reallocation of an Infinitely Divisible Good
Journal
Economic Theory
Author(s)
Klaus B., Peters H., Storcken T.
ISSN
0938-2259
Publication state
Published
Issued date
1997
Peer-reviewed
Oui
Volume
10
Number
2
Pages
305-333
Language
english
Abstract
We consider the problem of reallocating the total initial endowments of an infinitely divisible commodity among agents with single-peaked preferences. With the uniform reallocation rule we propose a solution which satisfies many appealing properties, describing the effect of population and endowment variations on the outcome. The central properties which are studied in this context are population monotonicity, bilateral consistency, (endowment) monotonicity and (endowment) strategy-proofness. Furthermore, the uniform reallocation rule is Pareto optimal and satisfies several equity conditions, e.g., equal-treatment and envy-freeness. We study the trade-off between properties concerning variation and properties concerning equity. Furthermore, we provide several characterizations of the uniform reallocation rule based on these properties.
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Create date
25/05/2010 15:25
Last modification date
18/10/2019 16:22
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