A Sequential Allocation Problem: The Asymptotic Distribution of Resources

Abstract

In this paper we consider a sequential allocation problem with n individuals. The …rst individual can consume any amount of some endowment leaving the remaining for the second individual, and so on. Motivated by the limitations associated with the cooperative or non-cooperative solutions we propose a new approach. We establish some axioms that should be satis…ed, representativeness, impartiality, etc. The result is a unique asymptotic allocation rule. It is shown for n = 2; 3; 4; and a claim is made for general n. We show that it satis…es a set of desirable properties.

Agricultural Water Allocation under Cyclical Scarcity: The Role of Priority Water Rights

“…The most asymmetric rule is the full sequential allocation, where every single agent is considered as a different class [53]. This is the theoretical foundation of the prior appropriation doctrine used in the Western United States to define water rights.…”

A Behavioural Theory of Allocation in the Dictator Game

“…6Then, the representative set is given by Xm=((m+1)ε,mε),...,(2mε,ε) with m=1,2,.... A similar discretization approach applied to sequential allocation problems appears in Osório (2017).…”