Trade, expropriation and allocation
AbstractAllocation rules map preference profiles into allocations, whereas trading rules map preference profiles and allocations into allocations. It is shown that no allocation rule can derive from a trading rule based on voluntary trade and satisfying a weak efficiency condition. If the trading rule allows compulsory trade then the only allocation rules that can derive from a trading rule satisfying certain additional mild conditions are those having a hierarchy of dictators. These results contribute to accentuate the difference between centralized and decentralized allocation mechanisms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0407004.
Length: 13 pages
Date of creation: 05 Jul 2004
Date of revision:
Note: Type of Document - pdf; pages: 13
Contact details of provider:
Web page: http://220.127.116.11
Allocation rules; Compulsory trade; Hierarchy of dictators; Trading rules;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.