Abstract
Mediation is a dispute resolution process whereby agents reach a mutually acceptable agreement among different proposals that satisfy a set of principles. This paper provides a natural way of coming to such agreements in claims problems. In our approach, mediation combines (i) a set of fair properties (legitimate principles); and (ii) a criterion for delimiting the admissible manners of distributing the endowment, that is determined by the mediator expressing the two (dual) points of view to face such problems: awards and losses. These dual views define a lower and an upper bounds on awards, which are used to implement the so-called Double Recursive Process. We find that this process concludes at the midpoint between the two dual points of view. Finally, we argue that the criterion of the mediator could be established throughout Lorenz domination. In so doing, we retrieve the average of old and well-known rules.
Highlights
How should scarce resources be allocated among claimants? Such problems, in which the available quantity of a perfectly divisible good is not sufficient toJ.-M
SERIEs (2014) 5:357–375 satisfy the aggregate claim against the good, are known as claims problems
We study the consequences of establishing a warranty in awards, and the obligation of incurring minimum losses
Summary
How should scarce resources be allocated among claimants? Such problems, in which the available quantity of a perfectly divisible good (or endowment) is not sufficient to. A mediator proposes a way of distributing the endowment, F, among those that satisfy the legitimate principles P on which the society has agreed, so that the admissible rules should fulfil P and propose an allocation between F and its dual rule, Fd. we study the consequences of establishing a warranty in awards (lower bound on awards), and the obligation of incurring minimum losses (lower bound on losses, or, equivalently, an upper bound on awards). Since claims problems can be faced from the point of view of the incurred losses, the notion of an upper bound on awards naturally arises From this reasoning, the so-called Double Recursive Process provides a manner to solve claims problems as the recursive application of both:.
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