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The Pareto principle of optimal inequality

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  • BOMMIER, Antoine
  • ZUBER, Stéphane

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

The Pareto principle is often viewed as a mild requirement compatible with a variety of value judgements. In particular, it is generally thought that it can accommodate different degress of inequality aversion. We show that this is generally not true in time consistent intertemporal models where some uncertainty prevails.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • BOMMIER, Antoine & ZUBER, Stéphane, 2009. "The Pareto principle of optimal inequality," LIDAM Discussion Papers CORE 2009009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2009009
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2009.html
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    Cited by:

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    2. Miyagishima, Kaname, 2023. "Time-consistent fair social choice," Theoretical Economics, Econometric Society, vol. 18(3), July.

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    More about this item

    Keywords

    inequality aversion; Pareto principle; uncertainty; time consistency;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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