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The distribution of income, incomplete information and the rank and Pareto criteria

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  • Rubin Saposnik

Abstract

One income distribution dominates another according to the rank criterion if the income in each position, ordered from lowest to highest, is at least as great in the former distribution as the corresponding income in the latter, with the strict inequality holding at least once. Pareto dominance implies rank dominance, but not conversely. But rank dominance does imply Pareto dominance where agents are expected utility maximizers relative to subjective probability distributions that characterize incomplete information regarding agents' positions in income distributions. This suggests the rank criterion as a way of evaluating income distributions without resorting to interpersonal comparisons of utility. Copyright Kluwer Academic Publishers 1988

Suggested Citation

  • Rubin Saposnik, 1988. "The distribution of income, incomplete information and the rank and Pareto criteria," Public Choice, Springer, vol. 59(2), pages 195-202, November.
    • Handle: RePEc:kap:pubcho:v:59:y:1988:i:2:p:195-202
    DOI: 10.1007/BF00054454
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    References listed on IDEAS

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    1. Rubin Saposnik, 1983. "On evaluating income distributions: Rank dominance, the Suppes-Sen grading principle of justice, and Pareto optimality," Public Choice, Springer, vol. 40(3), pages 329-336, January.
    2. Rubin Saposnik, 1981. "Rank-dominance in income distributions," Public Choice, Springer, vol. 36(1), pages 147-151, January.
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