Towards equitable distribution via proportional equity constraints

The authors propose a new approach to the formulation of models for solving problems of equitable distribution. Equity is achieved by the use of ‘proportional equity constraints’ which require that each recipient must receive a share of the total distribution which falls within a prespecified range. The algorithmic implications of this new approach are illustrated using two mathematical models. The authors consider the problem of maximizing total flow in a multiterminal network with proportional equity constraints. An efficient algorithm for solving this problem is provided. As a further application, the authors show that the introduction of such constraints still permits easy solutions for the linear knapsack problem.