Optimal Reallocation under Additive and Ordinal Preferences

Reallocating resources to get mutually beneficial outcomes is a fundamental problem in various multi-agent settings. In the first part of the paper we focus on the setting in which agents express additive cardinal utilities over objects. We present computational hardness results as well as polynomial-time algorithms for testing Pareto optimality under different restrictions such as two utility values or lexicographic utilities. In the second part of the paper we assume that agents express only their (ordinal) preferences over single objects, and that their preferences are additively separable. In this setting, we present characterizations and polynomial-time algorithms for possible and necessary Pareto optimality.nonouirechercheInternationa

A Nested Demand Shares Model of Artificial Marine Habitat Choice by Sport Anglers

There is growing public interest in the development of artificial habitats to enhance and diversify coastal marine resources for recreational and commercial uses. In this article, a hierarchical discrete choice model of recreational demand for artificial habitat is presented using a nested multinomial logit analysis of artificial and natural habitat site choice by sport anglers. The model can be used to evaluate the effects of site characteristics and socioeconomic attributes of individual sport anglers on the share allocation of marine fishing trips and to estimate the economic benefits of new artificial habitat. An empirical application using survey data from sport anglers in southeast Florida is reported. The model parameters are used to estimate the expected use benefits and distributional implications of alternative new artificial habitat sites. Extensions and limitations of the model for artificial habitat planning are considered.Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Unemployment and endogenous reallocation over the business cycle

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Serial Rules in a Multi-Unit Shapley-Scarf Market

We study generalized Shapley-Scarf exchange markets where each agent is endowed with multiple units of an indivisible and agent-specific good and monetary compensations are not possible. An outcome is given by a circulation which consists of a balanced exchange of goods. We focus on circulation rules that only require as input ordinal preference rankings of individual goods, and agents are assumed to have responsive preferences over bundles of goods. We study the properties of serial dictatorship rules which allow agents to choose either a single good or an entire bundle sequentially, according to a fixed ordering of the agents. We also introduce and explore extensions of these serial dictatorship rules that ensure individual rationality. The paper analyzes the normative and incentive properties of these four families of serial dictatorships and also shows that the individually rational extensions can be implemented with efficient graph algorithms.PBiró gratefully acknowledges the financial support by the Hungarian Academy of Sciences, Momentum Grant No. LP2021-2, and by the Hungarian Scientific Research Fund, OTKA, Grant No. K143858. F. Klijn gratefully acknowledges financial support from AGAUR–Generalitat de Catalunya (2017-SGR-1359) and the Spanish Agencia Estatal de Investigación (AEI) through grants ECO2017-88130-P and PID2020-114251GB-I00 (funded by MCIN/ AEI /10.13039/501100011033) and the Severo Ochoa Programme for Centres of Excellence in R&D (Barcelona School of Economics, SEV-2015-0563 and CEX2019-000915-S). S. Pápai gratefully acknowledges financial support from an FRQSC grant titled “Formation des coalitions et des réseaux dans les situations économiques et sociales avec des externalités” (SE-144698

How to Understand High Food Prices

Commodity price booms are best explained by macroeconomic rather than market-specific factors. I argue that the rise in food prices over 2007 and the first half of 2008 should be seen as part of the wider commodity boom which is largely the result of rapid economic growth in China and throughout Asia in a context of loose money and in which, because of previous low investment, supply was inelastic. The demand for grains and oilseeds as biofuel feedstocks was the main cause of the price rise but macroeconomic and financial factors explain its extent. The futures market may be an important monetary transmission mechanism, but it is commodity investors, not speculators, who, by investing in commodities as an asset class, may have generalized prices rises across markets.Food prices, commodity prices, money, futures markets

Rationalizing Systems Analysis for the Evaluation of Adaptation Strategies in Complex Human-Water Systems

Water resources management is a nontrivial process requiring a holistic understanding of the factors driving the dynamics of human-water systems. Policy-induced or autonomous behavioral changes in human systems may affect water and land management, which may affect water systems and feedback to human systems, further impacting water and land management. Currently, hydro-economic models lack the ability to describe such dynamics either because they do not account for the multifactor/multioutput nature of these systems and/or are not designed to operate at a river basin scale. This paper presents a flexible and replicable methodological framework for integrating a microeconomic multifactor/multioutput Positive Multi-Attribute Utility Programming (PMAUP) model with an eco-hydrologic model, the Soil and Water Assessment Tool (SWAT). The connection between the models occurs in a sequential modular approach through a common spatial unit, the “hydrologic-economic representative units” (HERUs), derived from the boundaries of decision-making entities and hydrologic responsive units. The resulting SWAT-PMAUP model aims to provide the means for exploring the dynamics between the behavior of socio-economic agents and their connection with the water system through water and land management. The integrated model is illustrated by simulating the impacts of irrigation restriction policies on the Río Mundo subbasin in south-eastern Spain. The results suggest that agents' adaptation strategies in response to the irrigation restrictions have broad economic impacts and subsequent consequences on surface and groundwater hydrology. We suggest that the integrated modeling framework can be a valuable tool to support decision-making in water resources management across a wide range of scales