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Fair Production and Allocation of an Excludable Nonrival Good

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Author Info
François Maniquet
Yves Sprumont

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Abstract

We study fairness in economies with one private good and one partially excludable nonrival good. A social ordering function determines for each profile of preferences an ordering of all conceivable allocations. We propose the following Free Lunch Aversion condition: if the private good contributions of two agents consuming the same quantity of the nonrival good have opposite signs, reducing that gap improves social welfare. This condition, combined with the more standard requirements of Unanimous Indifference and Responsiveness, delivers a form of welfare egalitarianism in which an agent's welfare is measured by the quantity of the nonrival good that, consumed at no cost, would leave her indifferent to the bundle she is assigned. Copyright The Econometric Society 2004.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2004.00503.x
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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 72 (2004)
Issue (Month): 2 (03)
Pages: 627-640
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Handle: RePEc:ecm:emetrp:v:72:y:2004:i:2:p:627-640

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Michel Le Breton & John A. Weymark, 2002. "Arrovian Social Choice Theory on Economic Domains," Working Papers 0206, Department of Economics, Vanderbilt University, revised Sep 2003. [Downloadable!]
    Other versions:
  2. M. Fleurbaey & F. Maniquet, 2008. "Fair social orderings," Economic Theory, Springer, vol. 34(1), pages 25-45, January. [Downloadable!] (restricted)
  3. Hammond, Peter J, 1976. "Equity, Arrow's Conditions, and Rawls' Difference Principle," Econometrica, Econometric Society, vol. 44(4), pages 793-804, July. [Downloadable!] (restricted)
  4. Yves Sprumont, 1998. "Equal factor equivalence in economies with multiple public goods," Social Choice and Welfare, Springer, vol. 15(4), pages 543-558. [Downloadable!] (restricted)
  5. Moulin, Herve, 1994. "Serial Cost-Sharing of Excludable Public Goods," Review of Economic Studies, Blackwell Publishing, vol. 61(2), pages 305-25, April. [Downloadable!] (restricted)
  6. Eric Maskin, 1998. "Nash Equilibrium and Welfare Optimality," Harvard Institute of Economic Research Working Papers 1829, Harvard - Institute of Economic Research.
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  7. Moulin, Herve, 1987. "Egalitarian-Equivalent Cost Sharing of a Public Good," Econometrica, Econometric Society, vol. 55(4), pages 963-76, July. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Wolfgang Buchholz & Wolfgang Peters, 2007. "Equal Sacrifice and Fair Burden Sharing in a Public Goods Economy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Wolfgang Buchholz & Wolfgang Peters, 2008. "Equal sacrifice and fair burden-sharing in a public goods economy," International Tax and Public Finance, Springer, vol. 15(4), pages 415-429, August. [Downloadable!] (restricted)
  3. Marc Fleurbaey, 2004. "Two Criteria for Social Decisions," Economics Papers 2004-W27, Economics Group, Nuffield College, University of Oxford. [Downloadable!]
  4. Marc Fleurbaey & Koichi Tadenuma, 2009. "Universal Social Orderings," Global COE Hi-Stat Discussion Paper Series gd08-024, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  5. Chambers, Christopher P. & Hayashi, Takashi, . "Money metric utilitarianism," Working Papers 1295, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  6. FLEURBAEY, Marc & SPRUMONT, Yves, 2006. "Sharing the Cost of a Public Good without Subsidies," Cahiers de recherche 2006-11, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
  7. Marc Fleurbaey & Francois Maniquet, 2002. "Fair Income Tax," Economics Working Papers 0021, Institute for Advanced Study, School of Social Science. [Downloadable!]
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  8. Francois Maniquet & Yves Sprumont, 2002. "Welfare Egalitarianism in Non-Rival Environments," Economics Working Papers 0016, Institute for Advanced Study, School of Social Science. [Downloadable!]
    Other versions:
  9. Marc Fleurbaey, 2003. "Social Welfare, Priority to the Worst-Off And the Dimensions of Individual Well-Being," IDEP Working Papers 0312, Institut d'economie publique (IDEP), Marseille, France. [Downloadable!]
  10. SPRUMONT, Yves & MANIQUET, François, 2006. "Sharing the Cost of a Public Good: an Incentive-Constrained Axiomatic Approach," Cahiers de recherche 2006-09, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
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