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Surplus Sharing
Surplus sharing is a kind of a fair division problem where the goal is to share the financial benefits of cooperation (the "economic surplus") among the cooperating agents. As an example, suppose there are several workers such that each worker ''i'', when working alone, can gain some amount ''ui''. When they all cooperate in a joint venture, the total gain is ''u1''+...+''un+s'', where ''s''>0. This ''s'' is called the ''surplus'' of cooperation, and the question is: what is a fair way to divide ''s'' among the ''n'' agents? When the only available information is the ''ui'', there are two main solutions: * Equal sharing: each agent ''i'' gets ''ui''+''s''/''n'', that is, each agent gets an equal share of the surplus. * Proportional sharing: each agent ''i'' gets ''ui''+''(s*ui''/Σ''ui)'', that is, each agent gets a share of the surplus proportional to his external value (similar to the proportional rule in bankruptcy). In other words, ''ui'' is considered a measure of the agent's ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fair Division
Fair division is the problem in game theory of dividing a set of resources among several people who have an entitlement to them so that each person receives their due share. That problem arises in various real-world settings such as division of inheritance, partnership dissolutions, divorce settlements, electronic frequency allocation, airport traffic management, and exploitation of Earth observation satellites. It is an active research area in mathematics, economics (especially social choice theory), dispute resolution, etc. The central tenet of fair division is that such a division should be performed by the players themselves, maybe using a mediator but certainly not an arbiter as only the players really know how they value the goods. The archetypal fair division algorithm is divide and choose. It demonstrates that two agents with different tastes can divide a cake such that each of them believes that he got the best piece. The research in fair division can be seen as an exten ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Surplus
In mainstream economics, economic surplus, also known as total welfare or total social welfare or Marshallian surplus (after Alfred Marshall), is either of two related quantities: * Consumer surplus, or consumers' surplus, is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. * Producer surplus, or producers' surplus, is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit (since producers are not normally willing to sell at a loss and are normally indifferent to selling at a break-even price). Overview In the mid-19th century, engineer Jules Dupuit first propounded the concept of economic surplus, but it was the economist Alfred Marshall who gave the concept its fame in the field of economics. On a standard supply and demand diagram, consumer sur ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportional Rule (bankruptcy)
The proportional rule is a division rule for solving bankruptcy problems. According to this rule, each claimant should receive an amount proportional to their claim. In the context of taxation, it corresponds to a proportional tax. Formal definition There is a certain amount of money to divide, denoted by ''E'' (=Estate or Endowment). There are ''n'' ''claimants''. Each claimant ''i'' has a ''claim'' denoted by ''c_i''. Usually, \sum_^n c_i > E, that is, the estate is insufficient to satisfy all the claims. The proportional rule says that each claimant ''i'' should receive r \cdot c_i, where ''r'' is a constant chosen such that \sum_^n r\cdot c_i = E. In other words, each agent gets \frac\cdot E. Examples Examples with two claimants: * PROP(60,90; 100) = (40,60). That is: if the estate is worth 100 and the claims are 60 and 90, then r = 2/3, so the first claimant gets 40 and the second claimant gets 60. * PROP(50,100; 100) = (33.333,66.667), and similarly PROP(40,80; 100) = ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hervé Moulin
Hervé Moulin (born 1950 in Paris) is a French mathematician who is the Donald J. Robertson Chair of Economics at the Adam Smith Business School at the University of Glasgow. He is known for his research contributions in mathematical economics, in particular in the fields of mechanism design, social choice, game theory and fair division. He has written five books and over 100 peer-reviewed articles. Moulin was the George A. Peterkin Professor of Economics at Rice University (from 1999 to 2013):, the James B. Duke Professor of Economics at Duke University (from 1989 to 1999) and the University Distinguished Professor at Virginia Tech (from 1987 to 1989). He is a fellow of the Econometric Society since 1983, and the president of the Game Theory Society for the term 2016 - 2018. He also served as president of the Society for Social Choice and Welfare for the period of 1998 to 1999. He became a Fellow of the Royal Society of Edinburgh in 2015. Moulin's research has been suppo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strategyproofness
In game theory, an asymmetric game where players have private information is said to be strategy-proof or strategyproof (SP) if it is a weakly-dominant strategy for every player to reveal his/her private information, i.e. given no information about what the others do, you fare best or at least not worse by being truthful. SP is also called truthful or dominant-strategy-incentive-compatible (DSIC), to distinguish it from other kinds of incentive compatibility. An SP game is not always immune to collusion, but its robust variants are; with group strategyproofness no group of people can collude to misreport their preferences in a way that makes every member better off, and with strong group strategyproofness no group of people can collude to misreport their preferences in a way that makes at least one member of the group better off without making any of the remaining members worse off. Examples Typical examples of SP mechanisms are majority voting between two alternatives, second- ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shapley Value
The Shapley value is a solution concept in cooperative game theory. It was named in honor of Lloyd Shapley, who introduced it in 1951 and won the Nobel Memorial Prize in Economic Sciences for it in 2012. To each cooperative game it assigns a unique distribution (among the players) of a total surplus generated by the coalition of all players. The Shapley value is characterized by a collection of desirable properties. Hart (1989) provides a survey of the subject. The setup is as follows: a coalition of players cooperates, and obtains a certain overall gain from that cooperation. Since some players may contribute more to the coalition than others or may possess different bargaining power (for example threatening to destroy the whole surplus), what final distribution of generated surplus among the players should arise in any particular game? Or phrased differently: how important is each player to the overall cooperation, and what payoff can he or she reasonably expect? The Shapley val ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy Problem
A bankruptcy problem, also called a claims problem, is a problem of distributing a homogeneous divisible good (such as money) among people with different claims. The focus is on the case where the amount is insufficient to satisfy all the claims. The canonical application is a bankrupt firm that is to be liquidated. The firm owes different amounts of money to different creditors, but the total worth of the company's assets is smaller than its total debt. The problem is how to divide the scarce existing money among the creditors. Another application would be the division of an estate amongst several heirs, particularly when the estate cannot meet all the deceased's commitments. A third application is ''tax assessment''. One can consider the claimants as taxpayers, the claims as the incomes, and the endowment as the total after-tax income. Determining the allocation of total after-tax income is equivalent to determining the allocation of tax payments. Definitions The amount ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost-sharing Mechanism
In economics and mechanism design, a cost-sharing mechanism is a process by which several agents decide on the scope of a public product or service, and how much each agent should pay for it. Cost-sharing is easy when the marginal cost is constant: in this case, each agent who wants the service just pays its marginal cost. Cost-sharing becomes more interesting when the marginal cost is not constant. With increasing marginal costs, the agents impose a negative externality on each other; with decreasing marginal costs, the agents impose a positive externality on each other (see example below). The goal of a cost-sharing mechanism is to divide this externality among the agents. There are various cost-sharing mechanisms, depending on the type of product/service and the type of cost-function. Divisible product, increasing marginal costs In this setting, several agents share a production technology. They have to decide how much to produce and how to share the cost of production. The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Popular Science Monthly/Volume 48/January 1896/Both Sides Of Profit Sharing
Popularity or social status is the quality of being well liked, admired or well known to a particular group. Popular may also refer to: In sociology * Popular culture * Popular fiction * Popular music * Popular science * Populace, the total population of a certain place ** Populism, a political philosophy, based on the idea that the common people are being exploited. * Informal usage or custom, as in popular names, as opposed to formal or scientific nomenclature Companies * Popular, Inc., also known as ''Banco Popular'', a financial services company * Popular Holdings, a Singapore-based educational book company * The Popular (department store), a chain of department stores in El Paso, Texas, from 1902 to 1995 * ''The Popular Magazine'', an American literary magazine that ran for 612 issues from November 1903 to October 1931 Media Music * "Popular" (Darren Hayes song) (2004), on the album ''The Tension and the Spark'' * "Popular" (Eric Saade song) (2011), on the album ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
