Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87088
Authors: 
van den Brink, Rene
Chun, Youngsub
Year of Publication: 
2010
Series/Report no.: 
Tinbergen Institute Discussion Paper 10-035/1
Abstract: 
We investigate the implications of imposing balanced consistency and balanced cost reduction in the context of sequencing problems. Balanced consistency requires that the effect on the payoff from the departure of one agent to another agent should be equal between any two agents. On the other hand, balanced cost reduction requires that if one agent leaves a problem, then the total payoffs of the remaining agents should be affected by the amount previously assigned to the leaving agent. We show that the minimal transfer rule is the only rule satisfying efficiency and Pareto indifference together with either one of our two main axioms, balanced consistency and balanced cost reduction.
Subjects: 
Sequencing problem
minimal transfer rule
balanced consistency
balanced cost reduction
JEL: 
D63
D71
Document Type: 
Working Paper

Files in This Item:
File
Size
227.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.