Economy & Business, Volume 8, 2014

Abstract: According to the principle of degressively proportional allocation, larger units must limit their share in common good to the advantage of smaller units. This is only a framework principle leaving out many solutions. One way to achieve more accuracy is to define the so-called boundary conditions: to determine the minimum and maximum values of the shared good to be allocated to units participating in the division. Obviously, these values cause a particular distribution to deviate from the classical proportional allocation. This paper explores to what extent boundary conditions determine the minimum span of the deviation.