Extremal and game-theoretic characterizations of the probabilistic approach to income redistribution |
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| Authors: | A Charnes S Duffuaa M Intriligator |
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| Institution: | (1) Center for Cybernetic Studies, The University of Texas at Austin, Austin, Texas;(2) Department of Mathematics, TAMU, College Station, Texas;(3) University of California at Los Angeles, Los Angeles, California |
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| Abstract: | In this paper, we cast the problem of income redistribution in two different ways, one as a nonlinear goal programming model and the other as a game theoretic model. These two approaches give characterizations for the probabilistic approach suggested by Intriligator for this problem. All three approaches reinforce the linear income redistribution plan as a desirable mechanism of income redistribution.This research was partly supported by ONR Contract No. N00014-82-K-0295 with the Center for Cybernetic Studies, The University of Texas, Austin, Texas. |
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| Keywords: | Probabilistic approach linear income system nonlinear goal programming Kullback-Leibler information function core of a game Shapley value |
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