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On fairness of equilibria in economies with differential information

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  • Achille Basile

    ()

  • Maria Graziano

    ()

  • Marialaura Pesce

    ()

Abstract

The paper proposes a notion of fairness which overcomes the conflict arising between efficiency and the absence of envy in economies with uncertainty and asymmetrically informed agents. We do it in general economies which include, as particular cases, the main models of differential information economies, providing in this framework a natural competitive equilibrium notion which satisfies the fair criterion. The analysis is conducted allowing the presence of large traders, which may cause the lack of perfect competition. Copyright Springer Science+Business Media New York 2014

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File URL: http://hdl.handle.net/10.1007/s11238-013-9386-z
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Bibliographic Info

Article provided by Springer in its journal Theory and Decision.

Volume (Year): 76 (2014)
Issue (Month): 4 (April)
Pages: 573-599

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Handle: RePEc:kap:theord:v:76:y:2014:i:4:p:573-599

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Web page: http://www.springerlink.com/link.asp?id=100341

Related research

Keywords: Asymmetric information; Envy; Efficiency; Fairness; Mixed markets; Competitive equilibrium; C71; D51; D82;

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  1. Panzer, Elisha A & Schmeidler, David, 1974. "A Difficulty in the Concept of Fairness," Review of Economic Studies, Wiley Blackwell, vol. 41(3), pages 441-43, July.
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