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On Effcient and Procedurally-Fair Equilibrium Allocations in Sharing Games

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Author Info
Naoki Yoshihara

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Abstract

In pruoduction economies with skill differences, this paper discusses resource allocation schemes which are consistent with two notions of procedural fairness: labor sovereignty and equal-division-for-equal-work (EDEW)[Kranich(1994)]. The paper first shows that there always exists an efficient EDEW allocation [Kranich(1994)], which is supported as a Nash equilibrium of a game induced by a sharing mechanism which satisfies the above two principles. Second, since there still remains the implementation problem of efficient EDEW allocations, the paper provides a selection mechanism which itself satisfies labor sovereignty and EDEW, and appropriately selects a sharing mechanism which supports an efficient EDEW allocation under any particular economy. As a result, the paper shows that efficient EDEW allocations can be implemented in Nash equilibria via this selection mechanism.

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Publisher Info
Paper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number a397.

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Date of creation: Oct 2000
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Handle: RePEc:hit:hituec:a397

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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
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare

Cited by:
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  1. Naoki Yoshihara, 2007. "On Non-welfarist Social Ordering Functions," Discussion Paper Series a497, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  2. Akira Yamada & Naoki Yoshihara, 2006. "Triple Implementation by Sharing Mechanisms in Production Economies with Unequal Labor Skill," Discussion Paper Series a475, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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This page was last updated on 2009-11-25.

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