Measuring equality of opportunity by Shapley value

Giuseppe Pignataro

Economics Bulletin, 2010, vol. 30, issue 1, 786-798

Abstract: Equality of opportunity is a political ideal which requires that ex-ante inequalities, and only those inequalities, should be eliminated. Justice requires leveling the playing field by rendering everyone's opportunities equal in an appropriate sense, and then letting individual choices and their effects dictate further outcomes. In this paper we propose a methodology to decompose the path-independent Atkinson index of equality through Shapley value seeking for a measure of overall inequality produced by the marginal contributions of the opportunity and the responsibility component.

Keywords: Equality of opportunity; Shapley decomposition; Atkinson index; path independency. (search for similar items in EconPapers)
JEL-codes: D6 I3 (search for similar items in EconPapers)
Date: 2010-03-25
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Citations: View citations in EconPapers (3)

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