Hougaard, Jens Leth4; Moreno-Ternero, Juan D.5; Østerdal, Lars Peter3
1 Section for Production, Markets and Policy, Department of Food and Resource Economics, Faculty of Science, Københavns Universitet2 Universidad Pablo de Olavide3 Syddansk Universitet4 Section for Production, Markets and Policy, Department of Food and Resource Economics, Faculty of Science, Københavns Universitet5 Universidad Pablo de Olavide
We analyze a general model of rationing in which agents have baselines, in addition to claims against the (insufficient) endowment of the good to be allocated. Many real-life problems fit this general model (e.g., bankruptcy with prioritized claims, resource allocation in the public health care sector, water distribution in drought periods). We introduce (and characterize) a natural class of allocation methods for this model. Any method within the class is associated with a rule in the standard rationing model, and we show that if the latter obeys some focal properties, the former obeys them too.
Social Choice and Welfare, 2013, Vol 40, Issue 4, p. 1047-1066