Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2010-03-19 Number: 10-035/1 Author-Name: Rene van den Brink Author-Workplace-Name: VU University Amsterdam Author-Name: Youngsub Chun Author-Workplace-Name: Seoul National University, Seoul, Korea Title: Balanced Consistency and Balanced Cost Reduction for Sequencing Problems Abstract: This discussion paper resulted in a publication in 'Social Choice and Welfare', 2012, 38, 519-529.
We investigate the implications of imposing balanced consistency and balanced cost reduction in the context of sequencing problems. Balanced consistency requires that the effect on the payoff from the departure of one agent to another agent should be equal between any two agents. On the other hand, balanced cost reduction requires that if one agent leaves a problem, then the total payoffs of the remaining agents should be affected by the amount previously assigned to the leaving agent. We show that the minimal transfer rule is the only rule satisfying efficiency and Pareto indifference together with either one of our two main axioms, balanced consistency and balanced cost reduction. Classification-JEL: D63, D71 Keywords: Sequencing problem, minimal transfer rule, balanced consistency, balanced cost reduction File-Url: http://papers.tinbergen.nl/10035.pdf File-Format: application/pdf File-Size: 232565 bytes Handle: RePEc:tin:wpaper:20100035