Template-Type: ReDIF-Paper 1.0
Author-Name:  Jens Leth Hougaard
Author-Name-First: Jens Leth
Author-Name-Last: Hougaard
Author-Email: jlh@foi.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name:  Juan D. Moreno-Ternero
Author-Name-First: Juan D.
Author-Name-Last: Moreno-Ternero
Author-Workplace-Name: Department of Economics, Universidad Pablo de Olavide
Author-Name:  Lars Peter Østerdal
Author-Name-First:  Lars Peter 
Author-Name-Last: Østerdal
Author-Email: lpro@sam.sdu.dk
Author-Workplace-Name: Department of Business and Economics, University of Southern Denmark
Title:  Rationing with Baselines: The Composition Extension Operator
Abstract: We introduce a new operator for general rationing problems in which, besides conflicting claims, individual baselines play an important role in the rationing process. The operator builds onto ideas of composition, which are not only frequent in rationing, but also in related problems such as bargaining, choice, and queuing. We characterize the operator and show how it preserves some standard axioms in the literature on rationing. We also relate it to recent contributions in such literature.
Length: 14 pages
Creation-Date:  2012-07
File-URL: http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2012/MSAP_WP08_2012.pdf
File-Format: Application/pdf
Number: 08_2012
Classification-JEL: D63
Keywords: rationing, baselines, claims, operator, composition
Handle: RePEc:foi:msapwp:08_2012