Economics at your fingertips  

Fairness under Uncertainty

Thibault Gajdos () and Jean-Marc Tallon ()

Economics Bulletin, 2002, vol. 4, issue 18, 1-7

Abstract: Ever since its introduction by Foley (1967) and Varian (1974), the notion of fairness has been one of the most extensively used notion to evaluate allocations on an ethical basis. Whereas thereis an extensive literature on the efficiency properties of allocations in economies with uncertainty the concept of an envy-free allocation has not been widely studied in economies with uncertainty. We introduce two very natural notions of equity in an economy under uncertainty, namely ex ante and ex post equity, show they can contradict efficiency requirements. In particular, the set of ex ante efficient and ex post envy-free allocations may be empty. We nevertheless show that, under special circumstances, one may prove the existence of allocations that are both ex ante efficient and ex post envy-free. Such is the case, in particular, in an economy with individual risk and no aggregate risk.

JEL-codes: D3 D6 (search for similar items in EconPapers)
Date: 2002-10-02
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: Fairness under Uncertainty (2002) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

Page updated 2020-01-18
Handle: RePEc:ebl:ecbull:eb-02d30002