A Model of Access in the Absence of Markets

Jorge Holzer and McConnell Kenneth ()
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McConnell Kenneth: Department of Agricultural and Resource Economics, University of Maryland, 2200 Symons Hall, College Park, MD, 20742, USA

The B.E. Journal of Theoretical Economics, 2016, vol. 16, issue 1, 367-388

Abstract: Economists have long known that properly designed markets allocate resources efficiently. However, in many circumstances markets are unfeasible. In this paper, we construct a general model of access which allows us to value different assignments when resources are allocated in the absence of markets. We demonstrate that marginal value schedules are far less useful in allocating access when property rights are unattainable. The criteria for optimal allocation combine information on both the marginal value schedules and the assignments determining the probabilities of access to the resource. Our approach allows us to rank rationing policies in a wide range of real-world, second-best settings.

Keywords: access; allocation; rationing (search for similar items in EconPapers)
JEL-codes: D23 D45 H41 H44 Q20 Q22 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1515/bejte-2015-0026

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