Talmud {GameTheory}

Talmud Rule

Description

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

Usage

Talmud(E, C, Names = NULL)

Arguments

E

Endowment

C

Claims of the agents

Names

Labels of the agents

Details

The Talmud rule (Aumann 1985) proposes to apply the constrained equal awards rule, if the endowment is not enough to satisfy the half-sum of the claims. Otherwise, each agent receives the half of her claim and the constrained equal losses rule is applied to distribute the remaining endowment.

Note

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

Author(s)

Sebastian Cano-Berlanga <[e-mail]>

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.