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Games and Economic Behavior
Volume 50, Issue 2, February 2005, Pages 129-142
 
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doi:10.1016/j.geb.2004.01.006    How to Cite or Link Using DOI (Opens New Window)
Copyright © 2004 Elsevier Inc. All rights reserved.

Convergence under replication of rules to adjudicate conflicting claims

Youngsub ChunE-mail The Corresponding Author, a and William ThomsonCorresponding Author Contact Information, E-mail The Corresponding Author, b

a School of Economics, Seoul National University, Seoul 151-742, South Korea b Department of Economics, University of Rochester, Rochester, NY 14627, USA

Received 11 June 2002. 
Available online 6 May 2004.

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Abstract

We study the behavior of rules for the adjudication of conflicting claims when there is a large number of claimants with small claims. We model such situations by replicating some basic problem. We show that under replication, the random arrival rule [Math. Soc. Sci. 2 (1982) 345] behaves like the proportional rule, the rule that is the most often recommended in this context. Also, under replication, the minimal overlap rule [Math. Soc. Sci. 2 (1982) 345] behaves like the constrained equal losses rule, the rule that selects a division at which all claimants experience equal losses subject to no-one receiving a negative amount.

Author Keywords: Claims problems; Replication; Random arrival rule; Proportional rule; Minimal overlap rule; Constrained equal losses rule

D63; D70

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Games and Economic Behavior
Volume 50, Issue 2, February 2005, Pages 129-142
 
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