A Reduced Game Property for the Proportional Solution for Claims Problems

01/06/1996

A Reduced Game Property for the Proportional Solution for Claims Problems

Lahiri Somdeb

Working Papers

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The problem we discuss in this paper is one of allocating a homogeneous, divisible good among a group of claimants in a way that is perceived as just or fair. A solution to such a problem is allocating the good in proportion to the claims. We use a reduced game property to axiomatically characterize this solution. The model is interpreted as a distributor allocating a good amongst several retailers when demand exceeds supply.

IIMA