A Reduced Game Property for the Proportional Solutions for Claims Problems

Abstract

The Problem we discuss in this paper is one of allocating a homogenous, divisible good among a group of claimants in a way that is perceived as just or fair. A Solution to such a problem is allocating the good in proportion to the claims. We use a reduced game property to axiomatically characterize this solution. This model is interpreted as a distributor allocating a good amongst several retailers when demand exceeds supply