An iterative allocation mechanism in the edgeworth box
Anbarci, Nejat and Yi, Gyoseob 1998, An iterative allocation mechanism in the edgeworth box, International advances in economic research, vol. 4, no. 3, pp. 253-258, doi: 10.1007/BF02294894.
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An iterative allocation mechanism in the edgeworth box
This paper considers an iterative allocation mechanism which resolves the problem of multiplicity of allocations given by a mechanism in commodity space. At each stage, the average of the extreme allocations is taken and used as the starting point of the next stage. As long as the mechanism is individually rational and Pareto optimal, this iterative procedure yields a unique final allocation which is also individually rational and Pareto optimal. (JEL C63, C71)
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