Abstract:
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In this paper, we consider a sequential allocation problem with n individuals.
The first individual can consume any amount of a resource, leaving the
remainder for the second individual, and so on. Motivated by the limitations
associated with the cooperative or non-cooperative solutions, we propose a
new approach from basic definitions of representativeness and equal treatment.
The result is a unique asymptotic allocation rule for any number of
individuals. We show that it satisfies a set of desirable properties.
Keywords: Sequential allocation rule, River sharing problem, Cooperative
and non-cooperative games, Dictator and ultimatum games.
JEL classification: C79, D63, D74. |