Constrained Equal Losses Rule

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Description

This function calculates how to distribute a given endowment by the CEL rule.

Usage

1
CEL(E, C, Names = NULL)

Arguments

E

Endowment

C

Claims of the agents

Names

Labels of the agents

Details

The constrained equal losses (CEL) rule (Maimonides, 12th century and Aumann, 1985), chooses the awards vector at which all agents incur equal losses, subject to no one receiving a negative amount

Note

In order to calculate the rule properly, input the claims of the agents in ascending order.

Author(s)

Sebastian Cano-Berlanga <cano.berlanga@gmail.com>

References

Aumann, R.J. and Maschler, M., (1985) "Game Theoretic Analysis of a bankruptcy from the Talmud." Journal of Economic Theory 36, pp.195–213.