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On Effcient and Procedurally-Fair Equilibrium Allocations in Sharing Games

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  • Naoki Yoshihara

Abstract

In pruoduction economies with skill differences, this paper discusses resource allocation schemes which are consistent with two notions of procedural fairness: labor sovereignty and equal-division-for-equal-work (EDEW)[Kranich(1994)]. The paper first shows that there always exists an efficient EDEW allocation [Kranich(1994)], which is supported as a Nash equilibrium of a game induced by a sharing mechanism which satisfies the above two principles. Second, since there still remains the implementation problem of efficient EDEW allocations, the paper provides a selection mechanism which itself satisfies labor sovereignty and EDEW, and appropriately selects a sharing mechanism which supports an efficient EDEW allocation under any particular economy. As a result, the paper shows that efficient EDEW allocations can be implemented in Nash equilibria via this selection mechanism.

Suggested Citation

  • Naoki Yoshihara, 2000. "On Effcient and Procedurally-Fair Equilibrium Allocations in Sharing Games," Discussion Paper Series a397, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:hituec:a397
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    Cited by:

    1. Reiko Gotoh & Kotaro Suzumura & Naoki Yoshihara, 2005. "Extended social ordering functions for rationalizing fair allocation rules as game forms in the sense of Rawls and Sen," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(1), pages 21-41.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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