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An Equal Right Solution to the Compensation-Responsability Dilemma

In a simple model where skills may differ among agents, we propose to giv e them an equal right to the resources, interpreted as including both the technological possibilities and the skill profile. An equal right guarantees to each agent a minimal welfare level which depends only on her preferences. The conflicting objectives of unequal skill compensation and preferences responsability are then partially achieved.

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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 335.96.

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Length: 22 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:aub:autbar:335.96
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  1. Fleurbaey, Marc, 1995. "Equality and responsibility," European Economic Review, Elsevier, vol. 39(3-4), pages 683-689, April.
  2. W. Bossert & M. Fleurbaey & D. Van de gaer, 1996. "On second-best compensation," THEMA Working Papers 96-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  3. Iturbe-Ormaetxe, Inigo & Nieto, Jorge, 1996. "On Fair Allocations and Monetary Compensations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(1), pages 125-38, January.
  4. Roemer, John E., 1985. "Equality of Talent," Economics and Philosophy, Cambridge University Press, vol. 1(02), pages 151-188, October.
  5. Thomson, William, 1988. "A study of choice correspondences in economies with a variable number of agents," Journal of Economic Theory, Elsevier, vol. 46(2), pages 237-254, December.
  6. 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.
  7. Varian, Hal R., 1974. "Equity, envy, and efficiency," Journal of Economic Theory, Elsevier, vol. 9(1), pages 63-91, September.
  8. Moulin, Herve, 1992. "Welfare bounds in the cooperative production problem," Games and Economic Behavior, Elsevier, vol. 4(3), pages 373-401, July.
  9. Pazner, Elisha A & Schmeidler, David, 1978. "Decentralization and Income Distribution in Socialist Economies," Economic Inquiry, Western Economic Association International, vol. 16(2), pages 257-64, April.
  10. Hervé Moulin, 1990. "Joint Ownership of a Convex Technology: Comparison of Three Solutions," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 439-452.
  11. Marc Fleurbaey & Walter Bossert, 1996. "Redistribution and compensation (*)," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(3), pages 343-355.
  12. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(01), pages 25-55, April.
  13. Bossert, Walter, 1995. "Redistribution mechanisms based on individual characteristics," Mathematical Social Sciences, Elsevier, vol. 29(1), pages 1-17, February.
  14. Fleurbaey, Marc & Maniquet, Francois, 1996. "Fair allocation with unequal production skills: The No Envy approach to compensation," Mathematical Social Sciences, Elsevier, vol. 32(1), pages 71-93, August.
  15. John E. Roemer, 1986. "Equality of Resources Implies Equality of Welfare," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 751-784.
  16. Moulin Herve & Shenker Scott, 1994. "Average Cost Pricing versus Serial Cost Sharing: An Axiomatic Comparison," Journal of Economic Theory, Elsevier, vol. 64(1), pages 178-201, October.
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