Fairness, Justified Envy and Non-Discrimination with Consumption Externalities

Maria Gabriella Graziano ()
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Maria Gabriella Graziano: University of Naples Federico II and CSEF, https://csef.it/people/maria-gabriella-graziano/

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We study fairness in finite exchange economies with consumption externalities using the framework of A-economies, in which each agent is associated with a reference group and may propose consumption plans for the agents belonging to that group. We introduce notions of coalitional fairness and justified envy adapted to this reference-group structure and relate them to A-equilibrium and the fuzzy A-core. Under the conditions ensuring fuzzy A-core equivalence, equilibrium, core, coalitional fairness and the justified A-envy-free core characterize the same allocations. We also introduce a notion of type appropriate to A-economies and show that, with Aubin coalitions, imposing a solidarity based non-discrimination requirement does not further restrict the fuzzy A-core. The analysis highlights how the reference structure governs both decentralized opportunities and the relevant comparisons underlying fairness.

Keywords: Exchange economies; consumption externalities; A-equilibrium; fuzzy A-core; coalitional fairness; justified envy; non-discrimination. (search for similar items in EconPapers)
JEL-codes: C71 D51 D62 D63 (search for similar items in EconPapers)
Date: 2026-11-02
New Economics Papers: this item is included in nep-des
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