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When Too Little is as Good as Nothing at All: Rationing a Disposable Good Among Satiable People with Acceptance Thresholds

We study the problem of rationing a divisible good among a group of people. Each personʼs preferences are characterized by an ideal amount that he would prefer to receive and a minimum quantity that he will accept: any amount less than this threshold is just as good as receiving nothing at all. Any amount beyond his ideal quantity has no effect on his welfare.