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Envy-Free and Efficient Minimal Rights: Recursive No-Envy

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  • Dominguez Diego A

    ()
    (Instituto Tecnologico Autonomo de Mexico)

  • Nicolo Antonio

    ()
    (University of Padua)

Abstract

In economics the main efficiency criterion is that of Pareto-optimality. For problems of distributing a social endowment a central notion of fairness is no-envy (each agent should receive a bundle at least as good, according to her own preferences, as any of the other agent's bundle). For most economies there are multiple allocations satisfying these two properties. We provide a procedure, based on distributional implications of these two properties, which selects a single allocation which is Pareto-optimal and satisfies no-envy in two-agent exchange economies. There is no straightforward generalization of our procedure to more than two-agents.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.

Volume (Year): 9 (2009)
Issue (Month): 1 (March)
Pages: 1-16

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Handle: RePEc:bpj:bejtec:v:9:y:2009:i:1:n:6

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