Towards equitable distribution via proportional equity constraints

Abstract

We propose a new approach to the formulation of models for solving problems of equitable distribution. Equity is achieved by the use of “proportional equity constraints” which require that each recipient must receive ashare of the total distribution which falls within a prespecified range. The algorithmic implications of this new approach are illustrated using two mathematical models. We consider the problem of maximizing total flow in a multiterminal network with proportional equity constraints. An efficient algorithm for solving this problem is provided. As a further application, we show that the introduction of such constraints still permits easy solutions for the linear knapsack problem.