Sharing the proceeds from a hierarchical venture when agents have needs
Theoretical Economics
2026-04-21 v1
Abstract
We consider a setting in which a set of agents are hierarchically organized for a joint venture. They each generate revenues for the joint venture and have individual needs to cover. The aim is to distribute aggregate revenues appropriately. We characterize a family of need-adjusted geometric rules where the net revenue (after covering needs) "bubbles up" in the hierarchy, as well as a need-adjusted serial rule in which the net revenue is equally shared among each agent and his predecessors in the hierarchy.
Cite
@article{arxiv.2604.18108,
title = {Sharing the proceeds from a hierarchical venture when agents have needs},
author = {R. Pablo Arribillaga and Juan D. Moreno-Ternero and Pablo Neme},
journal= {arXiv preprint arXiv:2604.18108},
year = {2026}
}