Abstract:
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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 de ned: 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 e ect 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 nd 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
JEL classifi cation: C71, D63, D71. |