Efficient Defection: Overage-Proportional Rationing Attains the Cooperative Frontier
Abstract
We study a noncooperative -player game of slack allocation in which each player has entitlement and chooses a claim . Let (overage) and (slack); set and . At the end of the period an overage-proportional clearing rule allocates cooperative surplus to defectors in proportion to ; cooperators receive . We show: (i) the selfish outcome reproduces the cooperative payoff vector ; (ii) with bounded actions, defection is a weakly dominant strategy; (iii) within the -power family, the linear rule () is the unique boundary-continuous member; and (iv) the dominant-strategy outcome is Strong Nash under transferable utility and hence coalition-proof (Bernheim et al., 1987). We give a policy interpretation for carbon rationing with a penalty collar.
Keywords
Cite
@article{arxiv.2509.07145,
title = {Efficient Defection: Overage-Proportional Rationing Attains the Cooperative Frontier},
author = {Florian Lengyel},
journal= {arXiv preprint arXiv:2509.07145},
year = {2025}
}
Comments
10 pages. Corrections to the boundary allocation in Appendix A to preserve budget balance; clarification of the dominant strategy result; bounded-actions paragraph added; aggregate-identity discussion tightened