Interdependent preferences in the design of equal-opportunity policies
AbstractWe 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.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2008015.
Date of creation: 01 Mar 2008
Date of revision:
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equality of opportunity; interdependent preferences; social policies; compensation; responsibility.;
Other versions of this item:
- MORENO-TERNERO, Juan D., . "Interdependent preferences in the design of equal-opportunity policies," CORE Discussion Papers RP -2110, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
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