Are incentives against economic justice?

Rodrigo Velez

Journal of Economic Theory, 2011, vol. 146, issue 1, 326-345

Abstract: We consider the problem of fairly allocating a social endowment of indivisible goods and money when the domain of admissible preferences contains, but is not restricted to, quasi-linear preferences. We analyze the manipulability of the Generalized Money Rawlsian Fair (GMRF) solutions. (i) We show that the Nash and strong Nash equilibrium correspondences of the "preference revelation game form" associated with each GMRF solution coincide with the no-envy solution (in equilibrium, efficiency is preserved according to agents' true preferences). (ii) A corollary is that the GMRF solutions "naturally implement" the no-envy solution in Nash and strong Nash equilibria.

Keywords: Efficiency; Fairness; Generalized; Money; Rawlsian; Fair; solutions; Implementation; Indivisible; goods; Manipulation; Mechanism; design; No-envy (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:146:y:2011:i:1:p:326-345

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