New Allocation Rule Ensures Fair Distribution of Private Goods
The article shows that in situations where goods can be divided and money can be used for compensation, an allocation rule is needed to ensure fairness. The rule should prevent individuals from gaining by breaking the problem into smaller parts. When this rule is combined with other standard properties, it results in a fair distribution where everyone gets an equal share of the total benefit. This means that in such scenarios, a rule that aims to maximize overall welfare emerges as the best solution.