Fairness and externalities

Artikel

We study equitable allocation of indivisible goods and money among agents with other-regarding preferences. First, we argue that Foley's (1967) equity test, i.e., the requirement that no agent prefer the allocation obtained by swapping her consumption with another agent, is suitable for our environment. Then, we establish the existence of allocations passing this test for a general domain of preferences that accommodates prominent other-regarding preferences. Our results are relevant for equitable allocation among inequity-averse agents and in a domain with linear externalities that we introduce. Finally, we present conditions guaranteeing that these allocations are efficient.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 11 ; Year: 2016 ; Issue: 1 ; Pages: 381-410 ; New Haven, CT: The Econometric Society

Classification and Topics

• Classification: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Noncooperative Games
• Subject: Equity ; efficiency ; other-regarding preferences ; equal income competitive allocations ; first welfare theorem

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Velez, Rodrigo A.
• Event: Veröffentlichung
• (who): The Econometric Society
• (where): New Haven, CT
• (when): 2016

Further information

• DOI: doi:10.3982/TE1651
• Handle: http://hdl.handle.net/10419/150281
• Last update: 10.03.2025, 11:41 AM CET