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The Pure Compensation Problem: Egalitarianism versus Laissez-Fairism

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Author Info
Moulin, Herve

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Abstract

A binary choice problem with side-payments and quasilinear utilities is considered. The au-thor studies two compensation rules, called social choice functions. The egalitarian rule divides equally the surplus above the average utility level. The laissez faire rule chooses an efficient decision but performs no transfer. Egalitaria nism is characterized by a monotonicity axiom called Agreement: no tw o agents ever disagree in comparing two distinct preferences of a thi rd one. Laissez fairism is characterized by the No Subsidy axiom: a c oalition would not be worse off if the other agents were not present. Copyright 1987, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 102 (1987)
Issue (Month): 4 (November)
Pages: 769-83
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Handle: RePEc:tpr:qjecon:v:102:y:1987:i:4:p:769-83

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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. 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!]
  3. William Thomson, 2006. "Children crying at birthday parties. Why? Fairness and incentives for cake division problems," RCER Working Papers 526, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
  4. Juan Moreno-Ternero & John E. Roemer, 2004. "Impartiality and Priority. Part 2: A Characterization with Solidarity," Cowles Foundation Discussion Papers 1477B, Cowles Foundation, Yale University, revised May 2005. [Downloadable!]
  5. William Thomson, 2007. "Children Crying at Birthday Parties. Why?," Economic Theory, Springer, vol. 31(3), pages 501-521, June. [Downloadable!] (restricted)
  6. Bettina Klaus, 2004. "A Note on the Separability Principle in Economies with Single-Peaked," UFAE and IAE Working Papers 601.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 14 Nov 2005. [Downloadable!]
  7. Youngsub Chun, 2001. "The Replacement Principle in Bargaining," Working Paper Series no42, Institute of Economic Research, Seoul National University. [Downloadable!]
  8. GORDON, Sidartha, 2006. "Public Decisions: Solidarity and the Status Quo," Cahiers de recherche 2006-05, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
  9. Juan Perote Peña, 2003. "Solidarity in Terms of Reciprocity," Economic Working Papers at Centro de Estudios Andaluces E2003/16, Centro de Estudios Andaluces. [Downloadable!]
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