IDEAS home Printed from https://ideas.repec.org/p/iea/carech/0905.html

Share the Gain, Share the Pain? Almost Transferable Utility, changes in production possibilities, and bargaining solutions

Author

Listed:

Abstract

We consider an n-person economy in which efficiency is independent of distribution but the cardinal properties of the agents’ utility functions preclude transferable utility (a property we call "Almost TU"). We show that Almost TU is a necessary and sufficient condition for all agents to either benefit jointly or suffer jointly with any change in production possibilities under well-behaved generalized utilitarian bargaining solutions (of which the Nash Bargaining and the utilitarian solutions are special cases). We apply the result to household decision making in the context of the Rotten Kid Theorem and in evaluating a change in family taxation.

Suggested Citation

  • Elisabeth Gugl & Justin Leroux, 2009. "Share the Gain, Share the Pain? Almost Transferable Utility, changes in production possibilities, and bargaining solutions," Cahiers de recherche 09-05, HEC Montréal, Institut d'économie appliquée.
    • Handle: RePEc:iea:carech:0905
    as

    Download full text from publisher

    File URL: http://www.hec.ca/iea/cahiers/2009/iea0905_jleroux.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.
    3. Elisabeth Gugl & Linda Welling, 2017. "Efficiency of Family Bargaining Models with Renegotiation: The Role of Transferable Utility across Periods," Studies in Microeconomics, , vol. 5(1), pages 53-83, June.
    4. Elisabeth Gugl & Linda Welling, 2012. "Time with sons and daughters," Review of Economics of the Household, Springer, vol. 10(2), pages 277-298, June.
    5. Elisabeth Gugl & Justin Leroux, 2015. "The Rotten Kid Theorem and Almost Transferable Utility," CESifo Working Paper Series 5642, CESifo.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iea:carech:0905. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Patricia Power (email available below). General contact details of provider: https://edirc.repec.org/data/iehecca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.