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Cooperative production with unequal skills: The solidarity approach to compensation

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  • Marc Fleurbaey

    () (THEMA, UniversitÊ de Cergy-Pontoise, F-95011 Cergy-Pontoise Cedex, France)

  • Francois Maniquet

    () (FNRS and FUNDP, B-5000 Namur, Belgium)

Abstract

We consider a simple production model and we assume that agents have unequal production skills which can in no way be attributed to their responsibility. We study how it is possible, if at all, to compensate for differential skills by applying Rawls's idea of a collective sharing in the benefits of skills. For this purpose, we introduce an axiom of solidarity, according to which agents should all be affected in the same direction if the profile of personal skills changes. We show that particular allocation rules are characterized be combining this axiom with a requirement of non-discrimination among preferences, or with a property capturing Nozick's idea of guaranteeing a minimal benefit from one's own skill.

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Bibliographic Info

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

Volume (Year): 16 (1999)
Issue (Month): 4 ()
Pages: 569-583

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Handle: RePEc:spr:sochwe:v:16:y:1999:i:4:p:569-583

Note: Received: 1 July 1996/Accepted: 25 May 1998
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Cited by:
  1. Justin Leroux, 2006. "A discussion of the consistency axiom in cost-allocation problems," Cahiers de recherche 06-13, HEC Montréal, Institut d'économie appliquée.
  2. Duygu Yengin, 2012. "Characterizing Welfare-egalitarian Mechanisms with Solidarity When Valuations are Private Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 12.
  3. Cappelen, Alexander W. & Tungodden, Bertil, 2004. "The liberal egalitarian paradox," Memorandum 14/2004, Oslo University, Department of Economics.
  4. MORENO-TERNERO, Juan D. & ROEMER, John E., 2005. "Impartiality, priority, and solidarity in the theory of justice," CORE Discussion Papers 2005077, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Juan Moreno-Ternero & John E. Roemer, 2004. "Impartiality and Priority. Part 2: A Characterization with Solidarity," Cowles Foundation Discussion Papers 1477B, Cowles Foundation for Research in Economics, Yale University, revised May 2005.
  6. Cato, Susumu, 2010. "Local strict envy-freeness in large economies," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 319-322, May.
  7. Claude Meidinger & Jean-Louis Rullière & Marie-Claire Villeval, 2001. "Does Team-Based Compensation Give Rise to Problems when Agents Vary in their Ability ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00179979, HAL.
  8. Alexander Cappelen & Bertil Tungodden, 2009. "Rewarding effort," Economic Theory, Springer, vol. 39(3), pages 425-441, June.
    • Cappelen, Alexander W. & Tungodden, Bertil, 2004. "Rewarding effort," Memorandum 15/2004, Oslo University, Department of Economics.

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