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Axiomatic resource allocation for heterogeneous agents

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Author Info
MORENO-TERNERO, Juan D. (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))
ROEMER, John E. (Yale University)

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Abstract

We analyze a model of resource allocation in which agents' abilities (to transform the resource into an interpersonally comparable outcome) and initial endowments may differ. We impose ethical and operational axioms in this model and characterize some allocation rules as a result of combining these axioms. Two focal (and polar) egalitarian rules are singled out. On the one hand, the rule that allocates the resource equally across agents. On the other hand, the rule tha allocates the resource so that the distribution of final outcomes is exicographically maximized.

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File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2008_18.pdf
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Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2008018.

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Date of creation: 01 Mar 2008
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Handle: RePEc:cor:louvco:2008018

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Related research
Keywords: resource allocation; egalitarianism; priority; solidarity; composition.;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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This page was last updated on 2009-11-19.

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