Resource Allocation with Warranties in Claims Problems

José-Manuel Giménez-Gómez (), Josep E. Peris and María-José Solís-Baltodano ()
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María-José Solís-Baltodano: Universitat Rovira i Virgili, Departament d'Economia and CREIP, Postal: Av.Universitat 1, 43204 Reus, Spain.

No 17-4, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: The establishing of warranties in order to ensure some minimum awards to each agent involved in an allocation (claims) problem has been analyzed in the body of literature by introducing lower bounds. When focusing on claims problems, four main lower bounds on awards have been defined: the minimal right (Curiel et al., 1987), the fair lower bound (Moulin, 2002), securement (Moreno-Ternero and Villar, 2004) and the min lower bound (Dominguez, 2013). The current approach analyzes the effect of requiring the aforementioned lower bounds in an allocation mechanism. We compare the mechanisms thus obtained together with the use of some additional properties. By doing so, we show that there is a correspondence between lower bounds and claims rules, i.e., associated to each particular lower bound, we find a particular claims rule. Consequently, we provide new characterizations for the constrained equal awards rule, as well as the Ibn Ezra proposal. Finally, a dual analysis, by using upper bounds in awards, provides characterizations of the dual rules of the previous ones: the constrained equal losses rule and the dual of the Ibn Ezra rule.

Keywords: Claims problems; Warranties; Lower bounds; Claims rules (search for similar items in EconPapers)
JEL-codes: C71 D63 D71 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2017-12-12
New Economics Papers: this item is included in nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2017_004

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