Axiomatic Characterization of Solutions for Rationing Problems

01/12/1996

Axiomatic Characterization of Solutions for Rationing Problems

Lahiri Somdeb

Working Papers

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Situations abound in the real world, where aggregate demand for a commodity exceeds aggregate supply. When such situations of excess demand occur, what is required is some kind of rationing. The literature on rationing problems has an interesting origin in the Babylonian Talmud. The purpose of this paper is to characterize axiomatically and analyze some Talmudic Solutions for rationing problems.

IIMA