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On Fairness and Welfare Analysis Under Uncertainty

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  • Chavas, Jean-Paul
  • Coggins, Jay S.

Abstract

This paper investigates the role of fairness, uncertainty, and a “veil of ignorance” in efficient resource allocation. It focuses on the choice of private and public goods, the method of financing, as well as the choice of information available for public decision-making. A fair-equivalent and Pareto efficient allocation is presented using a maximin criterion defined in terms of individual willingness-to-pay. The paper investigates the role of information in public decision making in terms of its implications for both efficiency and fairness. While better information typically generates improved efficiency, it can also contribute to unfair allocations. The effects of asymmetric information are discussed. Copyright Springer-Verlag Berlin Heidelberg 2003
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Suggested Citation

  • Chavas, Jean-Paul & Coggins, Jay S., 1993. "On Fairness and Welfare Analysis Under Uncertainty," Staff Papers 200573, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:200573
    DOI: 10.22004/ag.econ.200573
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    References listed on IDEAS

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    1. Riddell, W Craig, 1981. "Bargaining under Uncertainty," American Economic Review, American Economic Association, vol. 71(4), pages 579-590, September.
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    5. Scott Steele, 2002. "Gender-Based Advantage: A Model of Emerging and Constructed Opportunities," Feminist Economics, Taylor & Francis Journals, vol. 8(3), pages 77-97.

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