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A strong incompatibility between efficiency and equity in non-convex economies

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  • Maniquet, Francois

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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  • Maniquet, Francois, 1999. "A strong incompatibility between efficiency and equity in non-convex economies," Journal of Mathematical Economics, Elsevier, vol. 32(4), pages 467-474, December.
    • Handle: RePEc:eee:mateco:v:32:y:1999:i:4:p:467-474
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    1. Varian, Hal R., 1974. "Equity, envy, and efficiency," Journal of Economic Theory, Elsevier, vol. 9(1), pages 63-91, September.
    2. Moulin, Herve & Thomson, William, 1988. "Can everyone benefit from growth? : Two difficulties," Journal of Mathematical Economics, Elsevier, vol. 17(4), pages 339-345, September.
    3. Elisha A. Pazner & David Schmeidler, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, Oxford University Press, vol. 92(4), pages 671-687.
    4. William Thomson, 1983. "The Fair Division of a Fixed Supply Among a Growing Population," Mathematics of Operations Research, INFORMS, vol. 8(3), pages 319-326, August.
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    Cited by:

    1. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, 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.
    2. David Dillenberger & Uzi Segal, 2024. "Allocation Mechanisms with Mixture-Averse Preferences," Boston College Working Papers in Economics 1065, Boston College Department of Economics.
    3. de Clippel, Geoffroy & Pérez-Castrillo, David & Wettstein, David, 2012. "Egalitarian equivalence under asymmetric information," Games and Economic Behavior, Elsevier, vol. 75(1), pages 413-423.
    4. Cole, Richard & Tao, Yixin, 2021. "On the existence of Pareto Efficient and envy-free allocations," Journal of Economic Theory, Elsevier, vol. 193(C).
    5. Fleurbaey, Marc, 2007. "Two criteria for social decisions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 421-447, May.
    6. Cato, Susumu, 2010. "Local strict envy-freeness in large economies," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 319-322, May.

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    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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