Resource egalitarianism with a dash of efficiency
We study the problem of defining inequality-averse social orderings over allocations of commodities when individuals have different preferences. We formulate a notion of egalitarianism based on the axiom that any dominance between consumption bundles should be reduced. This Dominance Aversion requirement is compatible with Consensus, a version of the Pareto principle saying that an allocation y is better than x whenever everybody finds that everyoneʼs bundle at y is better than at x. We characterize a family of multidimensional leximin orderings satisfying Dominance Aversion and Consensus.
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