A strong incompatibility between efficiency and equity in non-convex economies
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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- Elisha A. Pazner & David Schmeidler, 1975.
"Egalitarian Equivalent Allocations: A New Concept of Economic Equity,"
174, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Pazner, Elisha A & Schmeidler, David, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 671-87, November.
- H. R. Varian, 1973.
"Equity, Envy and Efficiency,"
115, Massachusetts Institute of Technology (MIT), Department of Economics.
- Moulin, Herve & Thomson, William, 1988. "Can everyone benefit from growth? : Two difficulties," Journal of Mathematical Economics, Elsevier, vol. 17(4), pages 339-345, September.
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