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Fundamentální koncept nerovnosti v perspektivě paretovské ekonomie
[A Fundamental Concept of Inequality in the Perspective of Paretian Economics]

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  • Robin Maialeh

Abstract

Pareto efficiency plays the leading role throughout all branches of political economy. Frequently applied on various economic issues, Pareto efficiency decides on the optimal balance of resource distribution among economic agents. On the other hand, the current state of unequal distribution stimulates new economic researches to bring to light the relationship between market mechanism and observed inequality. The aim of the study is to provide a unique perspective on market-based inequalities which are derived from the self-preserving rationality of agents, and to prove that market mechanism inherently contains diverging forces. Additionally, it is showed that such divergences are not investigable by Pareto-optimization process; the process whose frequent misuse and misinterpretation obscures the general diverging drive of market mechanism and the process which may corrupt results of theoretical researches in the field.

Suggested Citation

  • Robin Maialeh, 2016. "Fundamentální koncept nerovnosti v perspektivě paretovské ekonomie [A Fundamental Concept of Inequality in the Perspective of Paretian Economics]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(8), pages 973-987.
    • Handle: RePEc:prg:jnlpol:v:2016:y:2016:i:8:id:1121:p:973-987
    DOI: 10.18267/j.polek.1121
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    References listed on IDEAS

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    1. Robin Maialeh, 2017. "Persisting Inequality: A Case of Probabilistic Drive towards Divergence," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(2), pages 215-234, June.
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    9. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    10. Barr, Nicholas, 2012. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 5, number 9780199297818.
    11. Mr. Arye L. Hillman, 2000. "Poverty, Inequality, and Unethical Behavior of the Strong," IMF Working Papers 2000/187, International Monetary Fund.
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    More about this item

    Keywords

    market mechanism; Pareto efficiency; inequality; self-preserving rationality;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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