We study equity in economies where a set of agents commonly own a technology producing a non-rival good from their private contributions. A social ordering function associates to each economy a complete ranking of the allocations. We build social ordering functions satisfying the property that individual welfare levels exceeding a legitimate upper bound should be reduced. Combining that property with efficiency and robustness properties with respect to changes in the set of agents, we obtain a kind of welfare egalitarianism based on a constructed numerical representation of individual preferences.
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Paper provided by Institute for Advanced Study, School of Social Science in its series Economics Working Papers with number
0016.
Length: 21 pages Date of creation: May 2002 Date of revision: Publication status: Published in Journal of Economic Theory, vol. 120(2), February 2005, 155-74 Handle: RePEc:ads:wpaper:0016
Find related papers by JEL classification: D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
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