An application of cooperative bargaining theory to an allocation problem in medicine
4 A cooperative bargaining model with two patients groups, their individual needs and different group size
4.1 Introduction The model in this chapter is an adapted version of the model in the previous chapter. Again, we draw upon a dilemma situation in allocating medical resources to patients. The well-known Parfit-Taurek discussion (e.g. in Lübbe (2004)) is about saving the life of 5 individuals versus the life of 1 with the same amount of medicine. Ahlert (2009) and generalizes Taurek’s example in health economics and defines an allocation problem with a finite number of patients who each have an individual need. The total amount of the medical good does not suffice to fulfill all needs. This chapter considers this type of model and defines and analyzes solutions to such allocation situations. In analogy to the previous chapter we apply cooperative bargaining theory and characterize allocation mechanisms by their normative properties. Finding solutions to the described allocation problem, one may consider different solution concepts. Ahlert (2006) and Ahlert (2009) define a random solution mechanism for such an allocation problem. A second approach considers allocating medical resources according to a priority list as proposed by Ahlert (2005) and Zimmermann (2009). Finally, we continue the discussion from the previous chapter by applying a cooperative bargaining approach to the allocation problem. In contrast to the first paper, we now consider a model with two groups and that each has more than one patient. In addition, we model a situation of distributing medical resources to patients while disregarding success probabilities. In analogy, we model an allocation problem as a bargaining problem...
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