Equal or proportional division of a surplus, and other methods

Moulin, H. (1987) Equal or proportional division of a surplus, and other methods. International Journal of Game Theory, 16(3), pp. 161-186. (doi: 10.1007/BF01756289)

Abstract

A cooperative venture yields a nonnegative surplus. Agents are differentiated by their opportunity costs only. Two surplus sharing methods (equal sharing, proportional sharing) are characterized with the help of four axioms. Separability and No Advantageous Reallocation deal with coalitional changes in the opportunity costs. Additivity and Path Independence take into account variations in the surplus level.Any triple of these axioms characterizes equalor proportional sharing. Any pair of axioms characterize a distinct, infinite family of methods, compromising between equal and proportional sharing.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Moulin, Professor Herve
• Authors: Moulin, H.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: International Journal of Game Theory
• ISSN: 0020-7276
• ISSN (Online): 1432-1270