Given n agents with von Neumann-Morgenstern utility functions who wish to divide m commodities, consider the n-person noncooperative game with strategies consisting of concave, increasing von Neumann-Morgenstern utility functions, and whose outcomes are the relative utilitarian solution. It is shown that any constrained equal-income competitive equilibrium allocation for the true utilities is a Nash equilibrium outcome for the noncooperative game. Conditions are presented under which these are the only pure strategy equilibrium outcomes.
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DHILLONÊ, Amrita & MERTENSÊ, Jean-Franois, 1993.
"Relative Utilitarianism,"
CORE Discussion Papers
1993048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Rodrigo Velez & William Thomson, 2009.
"Let them cheat!,"
RCER Working Papers
552, University of Rochester - Center for Economic Research (RCER).
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