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Kantian Equilibrium

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  • John E. Roemer

Abstract

Consider a game whose strategies are "contributions". A strategy profile is a Kantian equilibrium if "no" player would like "all" players to alter their contributions by the "same multiplicative factor." Kantian equilibria are Pareto efficient. We characterize the allocation rules on several domains of environments that can be implemented as Kantian equilibria. The concept unifies the "proportional solution" on production economies and the "linear cost-share equilibrium" on public-good economies. We study Kantian equilibrium in the prisoner's dilemma, in a voting problem, and in a political economy where redistribution is the issue. The Kantian dictum engenders considerable but not unqualified cooperation. Copyright The editors of the "Scandinavian Journal of Economics" 2010 .

Suggested Citation

  • John E. Roemer, 2010. "Kantian Equilibrium," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(1), pages 1-24, March.
  • Handle: RePEc:bla:scandj:v:112:y:2010:i:1:p:1-24
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    References listed on IDEAS

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    1. Bergstrom, Theodore C, 1995. "On the Evolution of Altruistic Ethical Rules for Siblings," American Economic Review, American Economic Association, vol. 85(1), pages 58-81, March.
    2. Laffont, Jean-Jacques, 1975. "Macroeconomic Constraints, Economic Efficiency and Ethics: An Introduction to Kantian Economics," Economica, London School of Economics and Political Science, vol. 42(168), pages 430-437, November.
    3. Timothy J. Feddersen, 2004. "Rational Choice Theory and the Paradox of Not Voting," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 99-112, Winter.
    4. Robin Boadway & Nicolas Marceau & Steeve Mongrain, 2007. "Redistributive Taxation under Ethical Behaviour," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 505-529, September.
    5. Naoki Yoshihara, 2000. "A characterization of natural and double implementation in production economies," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(4), pages 571-599.
    6. Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
    7. Sang-Chul Suh, 1994. "A mechanism implementing the proportional solution," Review of Economic Design, Springer;Society for Economic Design, vol. 1(1), pages 301-317, December.
    8. Roemer John E. & Silvestre Joaquim, 1993. "The Proportional Solution for Economies with Both Private and Public Ownership," Journal of Economic Theory, Elsevier, vol. 59(2), pages 426-444, April.
    9. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-350, June.
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