Pub Date : 2026-01-29DOI: 10.1016/j.mathsocsci.2026.102510
Takaaki Abe
This paper investigates fairness principles in cooperative games with communication graphs. We show that several axioms – fairness for neighbors (Béal et al., 2012), splitting (Casajus, 2009), and a new axiom called gap preservation – are equivalent. Moreover, we show that fairness for neighbors, combined with either component efficiency or a weaker locality condition, guarantees the existence of a pairwise stable communication graph.
{"title":"From neighbors to components: The equivalence of fairness for neighbors and gap preservation","authors":"Takaaki Abe","doi":"10.1016/j.mathsocsci.2026.102510","DOIUrl":"10.1016/j.mathsocsci.2026.102510","url":null,"abstract":"<div><div>This paper investigates fairness principles in cooperative games with communication graphs. We show that several axioms – fairness for neighbors (Béal et al., 2012), splitting (Casajus, 2009), and a new axiom called gap preservation – are equivalent. Moreover, we show that fairness for neighbors, combined with either component efficiency or a weaker locality condition, guarantees the existence of a pairwise stable communication graph.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102510"},"PeriodicalIF":0.7,"publicationDate":"2026-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146078326","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-22DOI: 10.1016/j.mathsocsci.2026.102508
Begoña Subiza , José-Manuel Giménez-Gómez , Josep E. Peris
The minimum cost spanning tree () problem analyzes how to efficiently connect geographically dispersed agents to a common source. Estévez-Fernández and Reijnierse (2014) study problems involving revenues, in which the agents benefit from being connected to the source. A key feature of their framework is that only certain coalitions, called effective coalitions, make sense to form. Estévez-Fernández and Reijnierse (2014) show that the core in cost–revenue games is typically empty. In this paper, we present a necessary condition that games with revenues need to fulfill to ensure the non-emptiness of the core: the existence of at least one agent with veto power, i.e., an agent whose participation is required in every effective coalition. Additionally, we extend the sufficient condition in Estévez-Fernández and Reijnierse (2014) for elementary cost problems.
{"title":"Non-emptiness of the core of mcst games with revenues","authors":"Begoña Subiza , José-Manuel Giménez-Gómez , Josep E. Peris","doi":"10.1016/j.mathsocsci.2026.102508","DOIUrl":"10.1016/j.mathsocsci.2026.102508","url":null,"abstract":"<div><div>The minimum cost spanning tree (<span><math><mrow><mi>m</mi><mi>c</mi><mi>s</mi><mi>t</mi></mrow></math></span>) problem analyzes how to efficiently connect geographically dispersed agents to a common source. Estévez-Fernández and Reijnierse (2014) study <span><math><mrow><mi>m</mi><mi>c</mi><mi>s</mi><mi>t</mi></mrow></math></span> problems involving revenues, in which the agents benefit from being connected to the source. A key feature of their framework is that only certain coalitions, called <em>effective coalitions</em>, make sense to form. Estévez-Fernández and Reijnierse (2014) show that the core in cost–revenue <span><math><mrow><mi>m</mi><mi>c</mi><mi>s</mi><mi>t</mi></mrow></math></span> games is typically empty. In this paper, we present a necessary condition that <span><math><mrow><mi>m</mi><mi>c</mi><mi>s</mi><mi>t</mi></mrow></math></span> games with revenues need to fulfill to ensure the non-emptiness of the core: the existence of at least one agent with <em>veto power</em>, i.e., an agent whose participation is required in every effective coalition. Additionally, we extend the sufficient condition in Estévez-Fernández and Reijnierse (2014) for elementary cost <span><math><mrow><mi>m</mi><mi>c</mi><mi>s</mi><mi>t</mi></mrow></math></span> problems.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102508"},"PeriodicalIF":0.7,"publicationDate":"2026-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146038597","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-16DOI: 10.1016/j.mathsocsci.2026.102507
Gonzalo F. de-Córdoba , Gonzalo Galiano
This paper develops the concept of poverty core, a novel framework that extends the traditional notion of poverty traps by incorporating the dynamics of irreversibility and complete capital depletion. While poverty traps describe self-reinforcing cycles of deprivation that hinder economic mobility, a poverty core emerges when an already vulnerable system experiences a random exogenous shock—such as a natural disaster, armed conflict, financial collapse, or health crisis—that destroys natural, physical, and human capital beyond the threshold required for recovery. Unlike poverty traps, which may be escaped through gradual investment or policy intervention, a poverty core represents an absorbing state of destitution where normal economic mechanisms are no longer sufficient to restore livelihoods.
To formally model the transition from poverty traps to poverty cores, we extend the Solow growth framework by incorporating divergence operators and introducing a nonlinear depreciation function that accounts for capital depletion under extreme shocks. This modification captures how spatial and structural economic vulnerabilities amplify depreciation rates beyond sustainable levels, leading to economic divergence instead of convergence. The model demonstrates that under specific conditions—where capital loss surpasses a critical threshold—economic collapse becomes irreversible, mathematically distinguishing poverty cores from conventional poverty traps.
Our findings contribute to the literature on economic fragility, disaster-induced poverty, and sustainability by providing a new theoretical and mathematical framework to identify cases where poverty becomes irreversible. Recognizing poverty cores as distinct from traditional traps is essential for designing effective interventions in post-shock environments, ensuring that affected communities are not left in perpetual economic collapse.
{"title":"Geographical poverty core formation in a spatial Solow growth model","authors":"Gonzalo F. de-Córdoba , Gonzalo Galiano","doi":"10.1016/j.mathsocsci.2026.102507","DOIUrl":"10.1016/j.mathsocsci.2026.102507","url":null,"abstract":"<div><div>This paper develops the concept of poverty core, a novel framework that extends the traditional notion of poverty traps by incorporating the dynamics of irreversibility and complete capital depletion. While poverty traps describe self-reinforcing cycles of deprivation that hinder economic mobility, a poverty core emerges when an already vulnerable system experiences a random exogenous shock—such as a natural disaster, armed conflict, financial collapse, or health crisis—that destroys natural, physical, and human capital beyond the threshold required for recovery. Unlike poverty traps, which may be escaped through gradual investment or policy intervention, a poverty core represents an absorbing state of destitution where normal economic mechanisms are no longer sufficient to restore livelihoods.</div><div>To formally model the transition from poverty traps to poverty cores, we extend the Solow growth framework by incorporating divergence operators and introducing a nonlinear depreciation function that accounts for capital depletion under extreme shocks. This modification captures how spatial and structural economic vulnerabilities amplify depreciation rates beyond sustainable levels, leading to economic divergence instead of convergence. The model demonstrates that under specific conditions—where capital loss surpasses a critical threshold—economic collapse becomes irreversible, mathematically distinguishing poverty cores from conventional poverty traps.</div><div>Our findings contribute to the literature on economic fragility, disaster-induced poverty, and sustainability by providing a new theoretical and mathematical framework to identify cases where poverty becomes irreversible. Recognizing poverty cores as distinct from traditional traps is essential for designing effective interventions in post-shock environments, ensuring that affected communities are not left in perpetual economic collapse.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102507"},"PeriodicalIF":0.7,"publicationDate":"2026-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979661","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-14DOI: 10.1016/j.mathsocsci.2026.102505
Kathia Bahloul Zekkari
This paper explores how asset bubbles influence employment and capital accumulation. The analysis is based on an overlapping generations (OLG) framework that incorporates trade union bargaining power and positive externality of aggregate capital. It shows that equilibrium inefficiency in the absence of bubbles — combined with sufficiently strong union bargaining power — can lead to the emergence of a bubble. This inefficiency stems from suboptimal employment levels. In this context, bubbles exert a crowding-in effect on employment, capital accumulation, and workers’ welfare. When driven by strong union bargaining, bubbles raise the return on productive capital, lower reservation wages, and stimulate hiring. These effects are further amplified by capital externalities, which enhance both investment and welfare.
{"title":"The impact of asset bubbles on capital and employment: The roles of labor unions and capital externality","authors":"Kathia Bahloul Zekkari","doi":"10.1016/j.mathsocsci.2026.102505","DOIUrl":"10.1016/j.mathsocsci.2026.102505","url":null,"abstract":"<div><div>This paper explores how asset bubbles influence employment and capital accumulation. The analysis is based on an overlapping generations (OLG) framework that incorporates trade union bargaining power and positive externality of aggregate capital. It shows that equilibrium inefficiency in the absence of bubbles — combined with sufficiently strong union bargaining power — can lead to the emergence of a bubble. This inefficiency stems from suboptimal employment levels. In this context, bubbles exert a crowding-in effect on employment, capital accumulation, and workers’ welfare. When driven by strong union bargaining, bubbles raise the return on productive capital, lower reservation wages, and stimulate hiring. These effects are further amplified by capital externalities, which enhance both investment and welfare.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102505"},"PeriodicalIF":0.7,"publicationDate":"2026-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146078325","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-10DOI: 10.1016/j.mathsocsci.2026.102506
Adam Graham-Squire , Matthew I. Jones , David McCune
In real-world elections where voters cast preference ballots, voters often provide only a partial ranking of the candidates. Despite this empirical reality, prior social choice literature frequently analyzes fairness criteria under the assumption that all voters provide a complete ranking of the candidates. We introduce new fairness criteria for multiwinner ranked-choice elections concerning truncated ballots. In particular, we define notions of the independence of losing voters blocs and independence of winning voters blocs, which state that the winning committee of an election should not change when we remove truncated ballots which rank only losing candidates, and the winning committee should change in reasonable ways when removing ballots which rank only winning candidates. Of the voting methods we analyze, the Chamberlin-Courant rule performs the best with respect to these criteria, the expanding approvals rule performs the worst, and the method of single transferable vote falls in between.
{"title":"New fairness criteria for truncated ballots in multi-winner ranked-choice elections","authors":"Adam Graham-Squire , Matthew I. Jones , David McCune","doi":"10.1016/j.mathsocsci.2026.102506","DOIUrl":"10.1016/j.mathsocsci.2026.102506","url":null,"abstract":"<div><div>In real-world elections where voters cast preference ballots, voters often provide only a partial ranking of the candidates. Despite this empirical reality, prior social choice literature frequently analyzes fairness criteria under the assumption that all voters provide a complete ranking of the candidates. We introduce new fairness criteria for multiwinner ranked-choice elections concerning truncated ballots. In particular, we define notions of the <em>independence of losing voters blocs</em> and <em>independence of winning voters blocs</em>, which state that the winning committee of an election should not change when we remove truncated ballots which rank only losing candidates, and the winning committee should change in reasonable ways when removing ballots which rank only winning candidates. Of the voting methods we analyze, the Chamberlin-Courant rule performs the best with respect to these criteria, the expanding approvals rule performs the worst, and the method of single transferable vote falls in between.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102506"},"PeriodicalIF":0.7,"publicationDate":"2026-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-10DOI: 10.1016/j.mathsocsci.2026.102504
Badr Bahloul, Ahmed Doghmi
Strategic candidacy in multi-winner elections describes situations where candidates may enter or withdraw to influence which candidates are elected. Existing studies typically assume all eligible candidates are interested in participating. In reality, some eligible candidates are uninterested in winning but may enter strategically, while interested candidates may strategically withdraw; both types of moves can change the set of elected candidates. This paper extends the standard framework by distinguishing interested and uninterested candidates and studying manipulation via coordinated entry and exit. We focus on evaluating whether multi-winner rules are immune to manipulation by coalitions of candidates with respect to the number of voters and the committee size . Specifically, we say that a rule satisfies candidate-coalition strategy-proofness (CCSP) for an election-point if the “true” strategy profile—where candidates enter the election if and only if they are interested—constitutes a strong Nash equilibrium (i.e., no coalition of players can achieve a collective benefit by deviating from the actions dictated by their true types). Focusing on five committee-scoring rules—-Borda, -Anti-plurality, BLOC, -Plurality, and -CC—we provide complete characterizations of the election-points where each rule satisfies CCSP. Specifically, -Plurality is CCSP exactly when ; -CC exactly when ; BLOC only when or ; and -Anti-plurality and -Borda never satisfy CCSP.
多赢家选举中的策略性候选是指候选人可以参选或退出以影响哪位候选人当选的情况。现有的研究通常假设所有符合条件的候选人都有兴趣参加。实际上，一些符合条件的候选人对获胜不感兴趣，但可能会战略性地进入，而感兴趣的候选人可能会战略性地退出；这两种举动都可以改变当选候选人的组合。本文通过区分感兴趣和不感兴趣的候选人以及研究通过协调进入和退出的操纵来扩展标准框架。我们专注于评估多赢家规则是否不受候选人联盟在选民数量n和委员会规模k方面的操纵。具体来说，我们说，如果“真正的”策略概况-候选人进入选举当且仅当他们感兴趣-构成强纳什均衡(即，任何玩家联盟都不可能通过背离他们的真实类型所决定的行动而获得集体利益。重点关注5个委员会评分规则——k- borda、k- anti -plurality、BLOC、k- plurality和l1 - cc——我们提供了每个规则满足CCSP的选举点（n,k）的完整特征。具体来说，当n<；2k+2；当n<；k+1；只有当(n,k)=(3,1)或n=2时，才有块；k-Anti-plurality和k-Borda不满足CCSP。
{"title":"Candidate coalitions and strategic manipulation in multi-winner elections: An evaluation of committee scoring rules","authors":"Badr Bahloul, Ahmed Doghmi","doi":"10.1016/j.mathsocsci.2026.102504","DOIUrl":"10.1016/j.mathsocsci.2026.102504","url":null,"abstract":"<div><div>Strategic candidacy in multi-winner elections describes situations where candidates may enter or withdraw to influence which candidates are elected. Existing studies typically assume all eligible candidates are interested in participating. In reality, some eligible candidates are uninterested in winning but may enter strategically, while interested candidates may strategically withdraw; both types of moves can change the set of elected candidates. This paper extends the standard framework by distinguishing interested and uninterested candidates and studying manipulation via coordinated entry and exit. We focus on evaluating whether multi-winner rules are immune to manipulation by <em>coalitions of candidates</em> with respect to the number of voters <span><math><mi>n</mi></math></span> and the committee size <span><math><mi>k</mi></math></span>. Specifically, we say that a rule satisfies <em>candidate-coalition strategy-proofness</em> (CCSP) for an <em>election-point</em> <span><math><mrow><mo>(</mo><mi>n</mi><mo>,</mo><mi>k</mi><mo>)</mo></mrow></math></span> if the “true” strategy profile—where candidates enter the election if and only if they are interested—constitutes a strong Nash equilibrium (i.e., no coalition of players can achieve a collective benefit by deviating from the actions dictated by their true types). Focusing on five committee-scoring rules—<span><math><mi>k</mi></math></span>-Borda, <span><math><mi>k</mi></math></span>-Anti-plurality, BLOC, <span><math><mi>k</mi></math></span>-Plurality, and <span><math><msub><mrow><mi>L</mi></mrow><mrow><mn>1</mn></mrow></msub></math></span>-CC—we provide complete characterizations of the election-points <span><math><mrow><mo>(</mo><mi>n</mi><mo>,</mo><mi>k</mi><mo>)</mo></mrow></math></span> where each rule satisfies CCSP. Specifically, <span><math><mi>k</mi></math></span>-Plurality is CCSP exactly when <span><math><mrow><mi>n</mi><mo><</mo><mn>2</mn><mi>k</mi><mo>+</mo><mn>2</mn></mrow></math></span>; <span><math><msub><mrow><mi>L</mi></mrow><mrow><mn>1</mn></mrow></msub></math></span>-CC exactly when <span><math><mrow><mi>n</mi><mo><</mo><mi>k</mi><mo>+</mo><mn>1</mn></mrow></math></span>; BLOC only when <span><math><mrow><mrow><mo>(</mo><mi>n</mi><mo>,</mo><mi>k</mi><mo>)</mo></mrow><mo>=</mo><mrow><mo>(</mo><mn>3</mn><mo>,</mo><mn>1</mn><mo>)</mo></mrow></mrow></math></span> or <span><math><mrow><mi>n</mi><mo>=</mo><mn>2</mn></mrow></math></span>; and <span><math><mi>k</mi></math></span>-Anti-plurality and <span><math><mi>k</mi></math></span>-Borda never satisfy CCSP.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102504"},"PeriodicalIF":0.7,"publicationDate":"2026-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979660","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-08DOI: 10.1016/j.mathsocsci.2026.102502
Shohei Yanagita
This paper characterizes a simple model of belief updating in response to recommendations from black boxes, recommenders whose information-generating processes are complex and opaque. In particular, we focus on two types of reactions to recommendations. The first is a skeptical response, in which individuals receive recommendations that are highly inconsistent with their prior beliefs and respond skeptically by updating their beliefs conservatively. The second is a credulous response, in which individuals readily accept recommendations that are aligned with their prior beliefs. These two contrasting reactions are jointly captured under the resulting updating rule.
{"title":"Skeptical and credulous belief updating under black box recommendations","authors":"Shohei Yanagita","doi":"10.1016/j.mathsocsci.2026.102502","DOIUrl":"10.1016/j.mathsocsci.2026.102502","url":null,"abstract":"<div><div>This paper characterizes a simple model of belief updating in response to recommendations from black boxes, recommenders whose information-generating processes are complex and opaque. In particular, we focus on two types of reactions to recommendations. The first is a skeptical response, in which individuals receive recommendations that are highly inconsistent with their prior beliefs and respond skeptically by updating their beliefs conservatively. The second is a credulous response, in which individuals readily accept recommendations that are aligned with their prior beliefs. These two contrasting reactions are jointly captured under the resulting updating rule.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102502"},"PeriodicalIF":0.7,"publicationDate":"2026-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145940473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-08DOI: 10.1016/j.mathsocsci.2026.102503
Hirokazu Sakane
Although it is extremely rare for real markets to adjust excess demand through the Walrasian tâtonnement, the standard in market adjustment theory, it is also true that excess demand is eventually eliminated. This gap suggests that some other factors, besides the price mechanism, contribute to adjusting excess demand. We hypothesize that consumers and firms, and therefore excess demand, spill over into neighboring markets in response to price differences that arise between markets. This motion must contribute to ameliorating excess demand. It is rational for some consumers (firms) to shift to markets where the prices of commodities are lower (higher) if price differences arise beyond those due to the characteristics of the commodities. Furthermore, excess demand fluctuates depending on the actions of consumers and firms. Thus, we study an economy in which excess demand advects and diffuses owing to price gradients. The application of partial differential equations is appropriate for this type of analysis.
Specifically, we model market price adjustment and the way consumers and firms respond by shifting toward other markets, thus causing excess demand to spill over and disperse. We represent these flows as advection and diffusion driven by price gradients and formalize their dynamics using partial differential equations. We prove that the competitive equilibrium price is locally and exponentially stable under certain conditions.
{"title":"Market adjustment with advection and diffusion in excess demand","authors":"Hirokazu Sakane","doi":"10.1016/j.mathsocsci.2026.102503","DOIUrl":"10.1016/j.mathsocsci.2026.102503","url":null,"abstract":"<div><div>Although it is extremely rare for real markets to adjust excess demand through the Walrasian tâtonnement, the standard in market adjustment theory, it is also true that excess demand is eventually eliminated. This gap suggests that some other factors, besides the price mechanism, contribute to adjusting excess demand. We hypothesize that consumers and firms, and therefore excess demand, spill over into neighboring markets in response to price differences that arise between markets. This motion must contribute to ameliorating excess demand. It is rational for some consumers (firms) to shift to markets where the prices of commodities are lower (higher) if price differences arise beyond those due to the characteristics of the commodities. Furthermore, excess demand fluctuates depending on the actions of consumers and firms. Thus, we study an economy in which excess demand advects and diffuses owing to price gradients. The application of partial differential equations is appropriate for this type of analysis.</div><div>Specifically, we model market price adjustment and the way consumers and firms respond by shifting toward other markets, thus causing excess demand to spill over and disperse. We represent these flows as advection and diffusion driven by price gradients and formalize their dynamics using partial differential equations. We prove that the competitive equilibrium price is locally and exponentially stable under certain conditions.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102503"},"PeriodicalIF":0.7,"publicationDate":"2026-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-30DOI: 10.1016/j.mathsocsci.2025.102493
Urs Schweizer
In this paper, a game-theoretic setting with transferable utility serves to explore the scope of damages rules for internalizing multidirectional external effects. From the legal perspective, damages rules aim at compensating victims for the wrongdoing of others (compensation requirement). Yet, to be held liable, it must be an agent’s wrongdoing that has caused harm to the victim (causation requirement). The two requirements can be at conflict when causation is meant in the sense of the but-for test. The paper proposes a causation test that resolves this conflict quite generally. It combines the legal idea of the NESS test with the Shapley value of a suitable characteristic function. The resulting damages rules fully internalize externalities even if they are of multidirectional nature.
{"title":"The conceivable scope of negligence rules for internalizing multidirectional externalities","authors":"Urs Schweizer","doi":"10.1016/j.mathsocsci.2025.102493","DOIUrl":"10.1016/j.mathsocsci.2025.102493","url":null,"abstract":"<div><div>In this paper, a game-theoretic setting with transferable utility serves to explore the scope of damages rules for internalizing multidirectional external effects. From the legal perspective, damages rules aim at compensating victims for the wrongdoing of others (compensation requirement). Yet, to be held liable, it must be an agent’s wrongdoing that has caused harm to the victim (causation requirement). The two requirements can be at conflict when causation is meant in the sense of the but-for test. The paper proposes a causation test that resolves this conflict quite generally. It combines the legal idea of the NESS test with the Shapley value of a suitable characteristic function. The resulting damages rules fully internalize externalities even if they are of multidirectional nature.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"140 ","pages":"Article 102493"},"PeriodicalIF":0.7,"publicationDate":"2025-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145886247","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-18DOI: 10.1016/j.mathsocsci.2025.102492
Ludovic A. Julien, Gagnie P. Yebarth
This paper investigates the taxation mechanism implemented in strategic bilateral exchange by Gabszewicz and Grazzini (1999). These authors show that endowment taxation with transfers can implement a Pareto-optimal allocation when the preferences of traders are represented by some specific homothetic utility functions. We show that this taxation mechanism can also implement a Pareto-optimal allocation when the preferences of traders are represented by non homothetic utility functions. To this end, we consider a class of quasi-linear utility functions. Furthermore, we illustrate that, with quasi-linear utility functions, by introducing heterogeneity between traders, there are other environments in which this taxation mechanism implements a Pareto-optimal outcome.
{"title":"A note on Pareto-optimal taxation mechanism in noncooperative strategic bilateral exchange","authors":"Ludovic A. Julien, Gagnie P. Yebarth","doi":"10.1016/j.mathsocsci.2025.102492","DOIUrl":"10.1016/j.mathsocsci.2025.102492","url":null,"abstract":"<div><div>This paper investigates the taxation mechanism implemented in strategic bilateral exchange by Gabszewicz and Grazzini (1999). These authors show that endowment taxation with transfers can implement a Pareto-optimal allocation when the preferences of traders are represented by some specific homothetic utility functions. We show that this taxation mechanism can also implement a Pareto-optimal allocation when the preferences of traders are represented by non homothetic utility functions. To this end, we consider a class of quasi-linear utility functions. Furthermore, we illustrate that, with quasi-linear utility functions, by introducing heterogeneity between traders, there are other environments in which this taxation mechanism implements a Pareto-optimal outcome.</div></div>","PeriodicalId":51118,"journal":{"name":"Mathematical Social Sciences","volume":"139 ","pages":"Article 102492"},"PeriodicalIF":0.7,"publicationDate":"2025-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145797485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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