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Welfare-domination under preference-replacement: A survey and open questions

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Author Info
William Thomson () (Department of Economics, University of Rochester, Rochester, NY 14627, USA)

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Abstract

The objective of this paper is to describe various applications of a requirement of solidarity pertaining to situations in which the preferences of some of the agents may change. It says that the welfares of all agents whose preferences are fixed should be affected in the same direction: they should all weakly gain, or they should all weakly lose. We show how this condition, which we name "welfare-domination under preference-replacement", can help in evaluating allocation rules. We discuss it in several contexts: private good allocation in classical economies, public good decision, binary choice with quasi-linear preferences, economies with indivisible goods, economies with single-peaked preferences, both in the private good case and in the public good case, and economies with time. For some of these models the implications of the property are well understood. For others, we state a number of open problems.

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Publisher Info
Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 16 (1999)
Issue (Month): 3 ()
Pages: 373-394
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Handle: RePEc:spr:sochwe:v:16:y:1999:i:3:p:373-394

Note: Received: 2 January 1997/Accepted: 26 February 1998
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  1. GORDON, Sidartha, 2006. "Solidarity in Choosing a Location on a Cycle," Cahiers de recherche 2006-06, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
  2. SPRUMONT, Yves & MOULIN, Hervé, 2005. "Fair Allocation of Production Externalities: Recent Results," Cahiers de recherche 2005-22, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
  3. Moulin, Herve & Sprumont, Yves, 2003. "On Demand Responsiveness in Additive Cost Sharing," Working Papers 2003-10, Rice University, Department of Economics. [Downloadable!]
    Other versions:
  4. Javier Perote Peña & Juan Perote Peña, 2003. "A Social Choice Trade-off Between Alternative Fairness Concepts: Solidarity versus Flexibility," Economic Working Papers at Centro de Estudios Andaluces E2003/10, Centro de Estudios Andaluces. [Downloadable!]
  5. GORDON, Sidartha, 2006. "Public Decisions: Solidarity and the Status Quo," Cahiers de recherche 2006-05, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
  6. Juan Perote Peña, 2003. "Solidarity in Terms of Reciprocity," Economic Working Papers at Centro de Estudios Andaluces E2003/16, Centro de Estudios Andaluces. [Downloadable!]
  7. William Thomson, 2007. "Children Crying at Birthday Parties. Why?," Economic Theory, Springer, vol. 31(3), pages 501-521, June. [Downloadable!] (restricted)
  8. Youngsub Chun, 2001. "The Replacement Principle in Bargaining," Working Paper Series no42, Institute of Economic Research, Seoul National University. [Downloadable!]
  9. Bettina Klaus, 2001. "Target Rules for Public Choice Economies on Tree Networks and in Euclidean Spaces," Theory and Decision, Springer, vol. 51(1), pages 13-29, August. [Downloadable!] (restricted)
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