Bankruptcy Problem in Network Sharing

Total Page:16

File Type:pdf, Size:1020Kb

Bankruptcy Problem in Network Sharing 1 Bankruptcy Problem in Network Sharing: Fundamentals, Applications and Challenges Angelos Antonopoulos, IEEE Senior Member Telecommunications Technological Centre of Catalonia (CTTC/CERCA) Castelldefels, Spain Email: [email protected] Abstract—Network sharing has been already adopted increase in capital and operational expenditure (CAPEX by mobile network operators as a reliable and effective and OPEX, respectively), threatening the viability of fu- countermeasure to the constantly increasing network ture mobile networks. cost. The introduction of the fifth generation (5G) mobile communications is expected to revolutionize the Network sharing [2] has already become a standard part telecommunications world, however it also brings new of the operating model for mobile operators, while the challenges to the network sharing, as new technologies trend is constantly accelerating. Through sharing both (e.g., network virtualization, cloud architectures, etc.) active and passive equipment, operators have been able and types of resources (e.g., computation and storage) to significantly reduce the total cost of ownership, while come to the fore. Despite their inherent differences, the common characteristic of the emerging resources is that improving network quality. Hitherto, operators have been they are limited and, in many cases, insufficient to cover able to achieve significant savings1, while recent reports the rising traffic demands. In this article, we highlight foresee that these savings will be even more impressive the equivalence between the distribution of a limited (i.e., up to 50%) in 5G, as greenfield deployment is better number of resources and the bankruptcy problem, suited for sharing, since it avoids the cost of network where the demands of different agents over a given commodity exceed its total quantity. In particular, i) consolidation [3]. we review the fundamentals and existing solutions of Nonetheless, despite its strong potential, 5G network the bankruptcy problem, ii) we provide potential appli- sharing is not a clear-cut concept and comes along with cations of this problem in mobile network sharing, and several challenges. More specifically, the evolution of the iii) we list challenges and open issues for the application of the bankruptcy game in the mobile communications mobile networks increases their complexity and, conse- domain. The main goal of our work is to identify new quently, the different types of resources that can be en- research lines that will foster the 5G network sharing. countered. In particular, unlike the traditional sharing Index Terms—Bankruptcy game; Game theory; 5G; schemes that focus on the physical infrastructure and Infrastructure Sharing. the communication resources in basic network parts (e.g., radio access or transport network), the introduction of a series of different paradigms in future networks brings I. Introduction new heterogeneous resources that need to be explicitly The fifth generation (5G) mobile communications is considered. For instance, the cloud radio access network just around the corner, signaling the transformation of (C-RAN) technology generates new network parts (i.e., telecommunication networks from mere communication fronthaul) that did not exist in previous mobile gener- channels into key enablers for a variety of important ations, the adoption of fog and multi-access edge com- vertical industries, such as e-Health, manufacturing and puting (MEC) implies new computational and storage automotive, among others. It is expected that upcoming resources, while there are also hardware developments 5G networks will provide extremely high data rates and with the appearance of unmanned aerial vehicles (UAVs) ultra low latency, thus being able to fulfill the strict that can be part of the network by carrying small base requirements of different traffic types, e.g., augmented stations. On top of this, the embracement of renewable reality (AR) or remote surgery applications. energy sources for the network power supply adds another The high potential of 5G networks, along with the degree of complexity that should be contemplated by the rapid evolution of mobile devices, constitute some of the forthcoming network sharing schemes. main factors for the anticipated data traffic explosion. In Despite their heterogeneity and their inherent differ- particular, according to Cisco forecasts, the global mobile ences, all the aforementioned resources share a common data traffic will increase seven-fold between 2017 and 2022, characteristic, i.e., they are limited and they become even reaching 77.5 exabytes per month by 2022 [1]. Apparently, more valuable as the data traffic grows. Therefore, as to cope with these unprecedented traffic demands, mobile the network expansion and the inclusion of additional network stakeholders (e.g., mobile operators, infrastruc- ture providers, etc.) need to upgrade and expand their net- 1Please see: https://www.gsma.com/futurenetworks/wiki/infrastructure- works, something that intrinsically implies an important sharing-an-overview 2 resources is not always feasible (e.g., due to space lim- are allocated to each agent, respectively. It is worth noting itations or cost), efficient sharing approaches should be that, following this approach, it is possible that one agent established. In this context, this challenging situation of receives an amount higher than the one she claimed. In our sharing limited resources among various interested parties example, the entity would be divided in three equal parts, can be formulated as a bankruptcy problem, which is a i.e., A1 = A2 = A3 = 15. Obviously, the first claimant distribution problem that involves the allocation of a would receive a quantity higher than the requested, while given amount of a single commodity among a group of the requirements of the other two claimants would not be agents, when this amount is insufficient to satisfy all their satisfied. demands [4]. Taking into account the similarities of the limited re- C. Water Filling source sharing with the bankruptcy problem and the fact Water filling solution is another simple method that is that bankruptcy theory has not yet been fully exploited mainly used to avoid that a claimant is awarded with a in mobile network sharing scenarios, the main goal of this portion higher than the requested. In this case, we can article is to identify new research lines in order to pave think the claims as tanks of different height (i.e., propor- the way for the application of the bankruptcy problem tional to each claim) that are gradually filled with part of in network sharing. To that end, our contribution is the entity. Once the lower tank is filled, we continue only mainly threefold. First, we present the fundamentals of the with the rest ones, maintaining always the same “water” bankruptcy problem, along with a list of possible solutions level in the tanks to be filled. However, one important and the key ideas behind these solutions. Then, we focus disadvantage of this approach is that the losses are not on the telecommunications domain and we provide poten- equally shared, as usually the smaller claim is completely tial applications in existing and future mobile networks, satisfied and the losses affect mainly the high claims. Fig. 1 where the resource sharing can be modeled and solved demonstrates the water filling allocation in four different as a bankruptcy problem. Finally, we list some intriguing cases. In our toy example, following this approach, all open research lines and challenges for the application of claimants would receive 10 units (until the demand of the the bankruptcy theory in wireless networks. first claimant is fulfilled) and then the remaining 15 units would be equally split to the other two claimants. II. Bankruptcy Problem: Background The origins of the bankruptcy problem go several cen- turies back, following the fundamental human need for fair E=45 E=210 division of commodities2. In principle, each bankruptcy problem is characterized by an entity E ∈ R that has to be divided among N agents, whose individual claims Ci, i ∈ N, add up to an amount higher than the total entity, PN 15 15 15 70 70 70 i.e., i=1 Ci > E. Apparently, as it is not possible for all C1=100 C2=200 C3=300 C1=100 C2=200 C3=300 claims to be satisfied, different approaches may be followed for the division. In this section, we present a toy example E=340 E=550 along with some of the most popular solutions and the outcome allocations (Ai) they yield, summarized also in Table I. 100 120 120 100 200 250 A. Bankruptcy Problem: Toy Example C1=100 C2=200 C3=300 C1=100 C2=200 C3=300 Without loss of generality, we assume that a total entity Fig. 1: Water filling allocation in the bankruptcy problem of E = 45 units has to be allocated to three claimants, whose claims are C1 = 10, C2 = 20 and C3 = 30, respectively. As the sum of all claims is greater than the P3 D. Loss Sharing total entity, i.e., i=1 Ci = 60 > 45, it is not possible to fulfill all claims. To overcome the unbalanced loss issue, one possible solution would be to observe the problem from a different point of view and focus on the fair distribution of losses B. Equal Sharing instead of sharing the entity. More specifically, as the Equal sharing is the simplest form of sharing a com- sum of the claims is always higher than the entity, we modity among a set of interested agents. Equal sharing may estimate their difference and then split this difference completely neglects the individual claims of the involved equally to the N agents. You may also notice that, in parties and divides the commodity into equal shares that case that there are big discrepancies between the claims, this approach may induce negative values. For instance, if 2The Babylonian Talmud (a record of discussions about Jewish laws and customs) includes various cases with regard to the fair E = 45, C1 = 5 and C2 = 60, the loss sharing method distribution.
Recommended publications
  • Fairness in Bankruptcy Situations: an Experimental Study
    Fairness in bankruptcy situations: an experimental study Alexander W. Cappelen Roland I. Luttens Erik Ø. Sørensen Bertil Tungodden∗ August 11, 2015 Abstract The pari passu principle is the most prominent principle in the law of in- solvency. We report from a lab experiment designed to study whether people find this principle a fair solution to the bankruptcy problem. The experi- mental design generates situations where participants work and accumulate claims in firms, some of which subsequently go bankrupt. Third-party arbi- trators are randomly assigned to determine how the liquidation value of the bankrupt firms should be distributed between claimants. Our main finding is that there is a striking support for the pari passu principle of awarding claimants proportionally to their pre-insolvency claims. We estimate a ran- dom utility model that allows for the arbitrators to differ in what they consider a fair solution to the bankruptcy problem and find that about 85 percent of the participants endorse the proportional rule. We also find that a non-negligible fraction of the arbitrators follow the constrained equal losses rule, while there is almost no support in our experiment for the constrained equal awards rule or other fairness rules suggested in the normative literature. Finally, we show that the estimated random utility model nicely captures the observed arbi- trator behavior, in terms of both the overall distribution of awards and the relationship between awards and claims. 1 Introduction Bankruptcy law is concerned with situations where a debtor is unable to pay its debts and it constitutes an essential element in any well-functioning market econ- omy (Hotchkiss, John, Moordadian, and Thorburn, 2008).
    [Show full text]
  • Basis Utility and Proportionality in Games1
    Lost in Translation: Basis Utility and Proportionality in Games1 Barry Feldman Prism Analytics Kellstadt School of Business 53 West Jackson Blvd. #724 DePaul University Chicago, IL 60604 1 East Jackson Blvd. #6100 [email protected] Chicago, IL 60604 [email protected] July 18, 2005 abstract A player's basis utility is the utility of no payo®. Basis utility is neces- sary for the coherent representation of the equal split bargaining solution. Standard axioms for the Nash (1950) bargaining solution do not imply independence from basis utility. Proportional bargaining is the unique solution satisfying e±ciency, symmetry, a±ne transformation invariance and monotonicity in pure bargaining games with basis utility. All existing cooperative solutions become translation invariant once account is taken of basis utility. The noncooperative rationality of these results is demon- strated though an implementation of proportional bargaining based on Gul (1988). Quantal response equilibria with multiplicative error struc- tures (Goeree, Holt and Palfrey (2004)) become translation invariant with speci¯cation of basis utility. Equal split and proportional bargaining join the Kalai-Smorodinsky (1975) solution in a family of endogenously pro- portional monotonic pure bargaining solutions. JEL Classi¯cation: C70, C71, C72, C78. Keywords: Basis utility, equal split, Kalai-Smorodinsky solution, Nash bargaining, quantal response equi- libria, proportional bargaining, translation invariance. 1I am grateful to Peter Borm, Srihari Govindan, Chris O'Neill and Alvin E. Roth for discussions of topics related to this paper. Thanks also for comments to Oliver Gossner, Elena I~narraand other participants at the 2005 Stony Brook Game Theory Conference. °c 2005 by Barry Feldman. 1 Introduction There is no representation of basis utility in games.
    [Show full text]
  • Ame Theoretic Analysis of a Bankruptcy Proble from the Talmud*
    JOURNAL OF ECONOMIC THEORY 36, 195-213 (1985) ame Theoretic Analysis of a bankruptcy Proble from the Talmud* ROBERT J. AUMANN AND MICHAEL MASCHLER The Hebrew Universify, 91904 Jerusalem, Israel Received August 27, 1984; revised February 4, 1985 DEDICATED TO THE MEMORYOF SHLOMOAUMANN, TALMUDIC SCHOLARAND MAN OF THE WORLD, KILLED IN ACTION NEAR KHUSH-E-DNEIBA, LEBANON, ON THE EVE OF THE NINETEENTHOF SWAN, 5742 (JUNE 9, 1982). For three different bankruptcy problems, the 2000-year oid Babylonian Talmud prescribes solutions that equal precisely the nucleoli of the corresponding coalitional games. A rationale for these solutions that is independent of game theory is given in terms of the Talmudic principle of equai division of the contested amount: this rationale leads to a unique solution for all bankruptcy problems, which always coincides with the nucleolus. Two other rationales for the same rule are suggested. in terms of other Talmudic principles. (Needless to say, the rule in question is not proportional division). Jomd cf Economic Literature C’lussification Numbers: 022, 026, 031, 043, 213. ‘?: 1985 Academic Press. Inc. 1. 1N~RoDucTroN A man dies, leaving debts d, ,..., d,, totalling more than his estate E. should the estate be divided among the creditors? A frequent solution in modern law is proportional division. The rationale is that each dollar of debt should be treated in the same way; one looks at dollars rather than people. Yet it is by no means obvious that this is the only equitable or reasonable system. For example, if the estate does not exceed the smallest debt, equal division among the creditors makes good sense.
    [Show full text]
  • An Approach to N-Person Cooperative Games
    Undergraduate Thesis MAJOR IN MATHEMATICS Faculty of Mathematics University of Barcelona AN APPROACH TO N-PERSON COOPERATIVE GAMES Eric` L´opez Ramiro [email protected] Advisor: Dr. Josep Vives Dept. of Probability, Logic and Statistics Barcelona, January 18, 2016 This page intentionally left blank. Abstract This work is an overview on n-person cooperative games in Game Theory, the mathemat- ical theory of interactive decision situations characterized by a group of agents, each of whom has to make a decision based on their own preferences on the set of outcomes. These situations are called games, agents are players and decisions are strategies. By focusing on Cooperative Game Theory, we analyze concepts such as coalition formation, equilibrium, stability, fairness and the most important proposed solution concepts. Keywords: Cooperative Game Theory, Cooperative game, Shapley value, nucleolus, core, bankruptcy problem, airport problem, indices of power, voting games. Resum Aquest treball tracta sobre els jocs n-personals cooperatius en Teoria de Jocs, la branca de les matem`atiquesque estudia i analitza les interaccions entre una s`erie d'agents que han de prendre una decisi´o,segons les seves prefer`enciessobre el conjunt de possibles resultats dels jocs. En centrar-nos en la Teoria de Jocs Cooperatius, analitzarem conceptes com la formaci´ode coalicions, l'equilibri, la just´ıciai les propostes de conceptes de solucions m´es importants. i Acknowledgements For his continuous help and patient guidance throughout the development of this thesis, I would like to express my deep gratitude, first of all, to my advisor, Dr. Josep Vives. Without his encouragement, persistent advice and useful corrections, this would not have been possible.
    [Show full text]
  • What Is Game Theory Trying to Accomplish?
    1 What Is Game Theory Trying to Accomplish? 1 Introduction The language of game theory—coalitions, payo¤s, markets, votes— suggests that it is not a branch of abstract mathematics; that it is moti- vated by and related to the world around us; and that it should be able to tell us something about that world. Most of us have long realized that game theory and the ‘‘real world’’ (it might better be called the complex world) have a relationship that is not entirely comfortable; that it is not clear just what it is that we are trying to do when we build a game- theoretic model and then apply solution concepts to it. This is the subject I would like to explore in this paper. I might add that much the same questions apply to economic theory, at least the kind that those of us working in mathematical economics see most often; and that much of my paper will apply, mutatis mutandis, to economic theory as well. There is a branch of philosophy that deals with theory in the social sciences, so some of the things I have to say are unquestionably old hat. But I am not trying to be particularly original: I am only trying to open this topic, which I think concerns all of us, for discussion, and to suggest a particu- lar point of view. No doubt others have thought about these questions more thoroughly and deeply than I have, and are better versed in the history and philosophy of science in general. I will be grateful to anybody who sets me straight when I err, and who gives me references for the things I get right.
    [Show full text]
  • Axiomatic and Game-Theoretic Analysis of Bankruptcy And
    Axiomatic and GameTheoretic Analysis of Bankruptcy and Taxation Problems a Survey William Thomson This version August I am grateful to Bettina Klaus Eiichi Miyagawa Juan MorenoTernero Anne van den Nouweland James Schummer Oscar Volij and esp ecially Nir Dagan and ChunHsien Yeh for their very useful comments I also thank a referee for detailed comments and the NSF for its supp ort under grant SES and SBR Abstract When a rm go es bankrupt how should its liquidation value be divided among its creditors This essayisanintro duction to the lit erature devoted to the formal analysis of such problems We present the rules that are commonly used in practice or discussed in theoret ical work We show howmany can be obtained by applying solution concepts develop ed in co op erative game theory for bargaining games and for coalitional games We formulate prop erties of rules rst when the p opulation of agents is xed then when it may vary com pare the rules on the basis of these prop erties and search for rules satisfying the greatest number of the prop erties together We mo del the resolution of conicting claims as strategic games and extend the mo del to handle surplus sharing and situations in which the feasible set is sp ecied in utilityspace Identifying wellb ehaved taxation rules is formally identical to identifying rules to reconcile conicting claims and all of the results we present can b e reinterpreted in that context Keywords Axiomatic analysis Bankruptcy Claims problems Prop ortional rule Talmud rule Constrained equal awards rule Con
    [Show full text]
  • Sequential Sharing Rules for River Sharing Problems
    NOTA DI LAVORO 114.2009 Sequential Sharing Rules for River Sharing Problems By Erik Ansink and Hans-Peter Weikard, Department of Social Sciences, Wageningen University SUSTAINABLE DEVELOPMENT Series Editor: Carlo Carraro Sequential Sharing Rules for River Sharing Problems By Erik Ansink and Hans-Peter Weikard, Department of Social Sciences, Wageningen University Summary We analyse the redistribution of a resource among agents who have claims to the resource and who are ordered linearly. A well known example of this particular situation is the river sharing problem. We exploit the linear order of agents to transform the river sharing problem to a sequence of two-agent river sharing problems. These reduced problems are mathematically equivalent to bankruptcy problems and can therefore be solved using any bankruptcy rule. Our proposed class of solutions, that we call sequential sharing rules, solves the river sharing problem. Our approach extends the bankruptcy literature to settings with a sequential structure of both the agents and the resource to be shared. In the paper, we first characterise a class of sequential sharing rules. Subsequently, we apply sequential sharing rules based on four classical bankruptcy rules, assess their properties, and compare them to four alternative solutions to the river sharing problem. Keywords: River Sharing Problem, Sequential Sharing Rule, Bankruptcy Problem, Water Allocation JEL Classification: D63, D71, Q25 We thank Carmen Marchiori, Arjan Ruijs, and Ivan Soraperra for providing comments on earlier versions of this paper. Part of this research was done while the first author was visiting the Department of Economics at Queen Mary, University of London. Address for correspondence: Erik Ansink Department of Social Sciences Wageningen University P.O.
    [Show full text]
  • A Non-Cooperative Approach to Bankruptcy Problems∗
    A Non-cooperative Approach to Bankruptcy Problems∗ Ignacio Garc´ıa-Jurado IDEGA & Department of Statistics and OR University of Santiago de Compostela Julio Gonz´alez-D´ıaz† Antonio Villar Department of Statistics and OR University of Alicante & Ivie University of Santiago de Compostela Abstract We propose an elementary game form that allows to obtain the allocations proposed by any acceptable bankruptcy rule as the unique payoff vector of the corresponding Nash equilibria. JEL Classification: D63, C72. Key words: bankruptcy, non-cooperative games, Nash equilibrium, strong equilibrium. 1 Introduction A bankruptcy problem describes a case in which a planner has to allocate a given amount of a divisible good E among a set N of agents, when their claims (di)i∈N exceed the available P amount (that is, i∈N di > E). Most rationing situations can be given this form. Relevant examples are the execution of a will with insufficient assets, the allocation of a commodity with excess demand in a fixed price setting, the collection of a given amount of taxes, and, of course, the liquidation of a bankrupt firm among its creditors. Rationing problems encompass a wide range of distributive situations and are analytically very simple (indeed, a bankruptcy problem can be summarized by a triple (N, E, d)). The literature on bankruptcy problems is large and keeps growing. The main con- tributions refer to the analysis of different solutions following an axiomatic approach or ∗Financial support from the Ministerio de Ciencia y Tecnolog´ıa and FEDER, under projects BEC2001- 0535 and BEC2002-04102-C02-02, from the Generalitat Valenciana, under project CTIDIB/2002/314, and from the Xunta de Galicia, under project PGIDT03PXIC20701PN, is gratefully acknowledged.
    [Show full text]
  • Fair Resource Allocation in Systems with Complete Information Sharing Francesca Fossati, Sahar Hoteit, Stefano Moretti, Stefano Secci
    Fair Resource Allocation in Systems with Complete Information Sharing Francesca Fossati, Sahar Hoteit, Stefano Moretti, Stefano Secci To cite this version: Francesca Fossati, Sahar Hoteit, Stefano Moretti, Stefano Secci. Fair Resource Allocation in Systems with Complete Information Sharing. IEEE/ACM Transactions on Networking, IEEE/ACM, 2018, 26 (6), pp.2801-2814. 10.1109/TNET.2018.2878644. hal-01910226 HAL Id: hal-01910226 https://hal.archives-ouvertes.fr/hal-01910226 Submitted on 31 Oct 2018 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. 1 Fair Resource Allocation in Systems with Complete Information Sharing Francesca Fossati, Sahar Hoteit, Member, IEEE, Stefano Moretti, Stefano Secci, Senior, IEEE Abstract—In networking and computing, resource allocation is typically addressed using classical resource allocation protocols as the proportional rule, the max-min fair allocation, or solutions inspired by cooperative game theory. In this paper, we argue that, under awareness about the available resource and other users demands, a cooperative setting has to be considered in order to revisit and adapt the concept of fairness. Such a complete information sharing setting is expected to happen in 5G environments, where resource sharing among tenants (slices) needs to be made acceptable by users and applications, which therefore need to be better informed about the system status via ad-hoc (northbound) interfaces than in legacy environments.
    [Show full text]
  • Probabilistic Choice in Games: Properties of Rosenthalhs T"Solutions
    Probabilistic choice in games: Properties of Rosenthal’s t-solutions Mark Voorneveld Department of Economics, Stockholm School of Economics, Box 6501, 113 83 Stockholm, Sweden, e-mail: [email protected], tel +46-8-7369217, fax +46-8-313207. Abstract The t-solutions introduced in R. W. Rosenthal (1989, Int. J. Game Theory 18, 273-292) are quantal response equilibria based on the linear probability model. Choice probabilities in t-solutions are related to the determination of leveling taxes in taxation problems. The set of t-solutions coincides with the set of Nash equilibria of a game with quadratic control costs. Evaluating the set of t-solutions for increasing values of t yields that players become increasingly capable of iteratively eliminating never-best replies and eventually only play rationalizable actions with positive probability. These features are not shared by logit quantal response equilibria. Moreover, there exists a path of t-solutions linking uniform randomization to Nash equilibrium. JEL classi…cation: C72 Keywords: quantal response equilibrium, t-solutions, linear probability model, bounded rationality SSE/EFI Working Paper Series in Economics and Finance, No. 542 October 2003, this version: December 2004 I thank Jacob Goeree, Eric van Damme, Jörgen Weibull, Tore Ellingsen, Jan Potters, Dolf Talman, Jean-Jacques Herings, Peter Borm, Andrés Perea, Ronald Peeters, and several seminar audiences for helpful comments. 1 1 Introduction The literature on quantal response equilibria (QRE) provides a set of solution concepts for boundedly rational players in noncooperative games by replacing expected utility maxi- mization with probabilistic choice models. In these probabilistic choice models, players may choose suboptimal strategies, but at least play “better”responses with probabilities not lower than “worse” responses.
    [Show full text]
  • From the Talmud Into Present-Day Politics - a Bankruptcy Problem Approach to EU Fisheries Management
    From the Talmud into Present-Day Politics - A Bankruptcy Problem Approach to EU Fisheries Management - Noortje Groot University College Maastricht Capstone Advisor: Dr. G.M. Schoenmakers June, 2008 From the Talmud into Present-Day Politics - A Bankruptcy Problem Approach to EU Fisheries Management - Noortje Groot University College Maastricht Abstract Bankruptcy Problems provide a broad opportunity of mathematical analysis as the solution methods to these problems are plentiful, especially after rewriting the problem as a cooperative game. The latter leads to several unique one-point solutions such as the Shapley value and nucleolus, which coincides with the n-person Contested Garment solution developed to solve the Talmudic Widow Problem, a specific Bankruptcy Problem. Moreover, the theoretical matter of Bankruptcy Problems and their various allocation rules can prove its applicability in many real- life situations. Especially in an era of collapsing fish stocks the European Union fisheries management is one of these fields. Formulating the division of fishing rights amongst fisheries as a Bankruptcy Problem with the pre-set Total Allowable Catch as the estate, two specific scenarios are brought forward. Firstly, an investigation of which allocation model is best capable of bringing the fish stocks back to a sustainable situation – considering the selectivity of the coastal vs. trawler fleet as the models’ core parameter – prioritizes the Constrained Equal Awards rule above the currently adopted proportional rule. Furthermore, in situations where new fisheries plan on entering an existing system (i.e., the New Member Problem) a population monotonic division scheme (PMAS) is amongst one of the suggested solutions that maintain the system’s stability.
    [Show full text]
  • From the Bankruptcy Problem and Its Concede-And-Divide Solution to the Assignment Problem and Its Fair Division Solution
    Department of Economics Working Paper Series 401 Sunset Avenue Windsor, Ontario, Canada N9B 3P4 Administrator of Working Paper Series: Christian Trudeau Contact: [email protected] From the bankruptcy problem and its Concede-and-Divide solution to the assignment problem and its Fair Division solution Christian Trudeau (University of Windsor) Working paper 15 – 06 Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author or at http://ideas.repec.org/s/wis/wpaper.html. From the bankruptcy problem and its Concede-and-Divide solution to the assignment problem and its Fair Division solution Christian Trudeauy April 21, 2016 Abstract We revisit two classic problems: the assignment problem, in which agents create value when matched with a partner, and the bankruptcy problem, in which we need to share an endowment among agents with conflicting claims. We show that since Core Selection constrains us to exactly divide the value created by a pair of matched agents, the assignment problem can be seen as a two-player bankruptcy problem. This interpretation allows us to show that the classic Concede- and-Divide (Aumann and Maschler, 1985) sharing method for the bankruptcy problem is equivalent to the Fair Division solution (Thompson, 1981) for the assignment problem, itself the average of the extreme points of the core of Demange (1982) and Leonard (1983). We then exploit the link between the two problems to offer two characterizations of the Fair Division solution.
    [Show full text]