Guaranteed shares of benefits and costs
<|reference_start|>Guaranteed shares of benefits and costs: In a general fair division model with transferable utilities we discuss endogenous lower and upper guarantees on individual shares of benefits or costs. Like the more familiar exogenous bounds on individual shares described by an outside option or a stand alone utility, these guarantees depend on my type but not on others' types, only on their number and the range of types. Keeping the range from worst share to best share as narrow as permitted by the physical constraints of the model still leaves a large menu of tight guarantee functions. We describe in detail these design options in several iconic problems where each tight pair of guarantees has a clear normative meaning: the allocation of indivisible goods or costly chores, cost sharing of a public facility and the exploitation of a commons with substitute or complementary inputs. The corresponding benefit or cost functions are all sub- or super-modular, and for this class we characterise the set of minimal upper and maximal lower guarantees in all two agent problems.<|reference_end|>
@article{bogomolnaia2024guaranteed,
    title={Guaranteed shares of benefits and costs},
    author={Anna Bogomolnaia and Herv'e Moulin},
    journal={arXiv preprint arXiv:2406.14198},
    year={2024},
    archivePrefix={arXiv},
    eprint={2406.14198},
    primaryClass={econ.TH cs.GT}
}