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Interdependent preferences in the design of equal-opportunity policies

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  • MORENO-TERNERO, Juan D.

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

We study mechanisms to construct equal-opportunity policies for resource allocation. In our model agents enjoy welfare as a function of the effort they expend, and the amount of a socially provided resource they consume. Nevertheless, agents have interdependent allocations. As in the standard approach to equality of opportunity, the aim is to allocate the social resource so that welfare across individuals at the same relative effort level is as equal as possible. We show how pursuing this same aim while assuming that agents have interdependent preferences might crucially alter the results.

Suggested Citation

  • MORENO-TERNERO, Juan D., 2008. "Interdependent preferences in the design of equal-opportunity policies," LIDAM Discussion Papers CORE 2008015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2008015
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2008.html
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    Keywords

    equality of opportunity; interdependent preferences; social policies; compensation; responsibility.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H00 - Public Economics - - General - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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