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On the Fair Allocation of Indivisible Goods

In: Arrow and the Foundations of the Theory of Economic Policy

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  • Eric S. Maskin

Abstract

Kenneth Arrow had a major hand in establishing two of the fundamental results of general equilibrium theory: the existence of a competitive equilibrium (Arrow and Debreu 1954) and the decentrali-zability of a Pareto optimum (Arrow 1951). In this chapter, we are concerned with general equilibrium in a setting where some goods are indivisible. Hence, several hypotheses that are standard in equilibrium analysis are not satisfied. None the less, as we will see, the classic Arrow-Debreu techniques can be suitably modified to overcome this difficulty.

Suggested Citation

  • Eric S. Maskin, 1987. "On the Fair Allocation of Indivisible Goods," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, chapter 11, pages 341-349, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07357-3_12
    DOI: 10.1007/978-1-349-07357-3_12
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