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A Strong Incompatibility Between Efficiency and Equity in Non-Convex Economics

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Author Info

  • Maniquet, F.

Abstract

In allocation problems of perfectly divisible goods, we study the equity property of 'no-domination', according to which no agent can receive strictly more of all goods than any other agent. We prove that no-domination is incompatible with Pareto efficiency, as soon as preferences are allowed to be non-convex.

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Bibliographic Info

Paper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 426.

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Length: 9 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:roc:rocher:426

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Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.

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Keywords: ALLOCATION ; EQUITY ; ECONOMIC MODELS;

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References

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  1. Moulin, Herve & Thomson, William, 1988. "Can everyone benefit from growth? : Two difficulties," Journal of Mathematical Economics, Elsevier, vol. 17(4), pages 339-345, September.
  2. Pazner, Elisha A & Schmeidler, David, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 92(4), pages 671-87, November.
  3. H. R. Varian, 1973. "Equity, Envy and Efficiency," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 115, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Geoffroy de Clippel & David Pérez-Castrillo & David Wettstein, 2010. "Egalitarian Equivalence under Asymmetric Information," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 813.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Marc Fleurbaey, 2004. "Two Criteria for Social Decisions," Economics Papers 2004-W27, Economics Group, Nuffield College, University of Oxford.
  3. Cato, Susumu, 2010. "Local strict envy-freeness in large economies," Mathematical Social Sciences, Elsevier, Elsevier, vol. 59(3), pages 319-322, May.
  4. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, Elsevier, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506 Elsevier.

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