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Egalitarian Equivalence under Asymmetric Information

  • Geoffroy De Clippel
  • David Pérez-Castrillo
  • David Wettstein

We propose a definition of egalitarian equivalence that extends Pazner and Schmeidler's (1978) concept to environments with incomplete information. If every feasible allocation rule can be implemented by an incentive compatible mechanism (as, for instance, in the case of non-exclusive information), then interim egalitarian equivalence and interim incentive efficiency remain compatible, as they were under complete information. When incentive constraints are more restrictive, on the other hand, the two criteria may become incompatible.

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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 431.

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Date of creation: Feb 2010
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Handle: RePEc:bge:wpaper:431
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  28. McLean, Richard P., 2002. "Values of non-transferable utility games," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 55, pages 2077-2120 Elsevier.
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