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Fairness and its Price

Andrea Schneider () and Klaus Zimmermann

Review of Social Economy, 2012, vol. 70, issue 2, 181-199

Abstract: We discuss the economic aspects of fairness defined here in the benchmark case as equality of producer and consumer rents. We show that there are significant differences considering private and public goods, especially with regard to a potential self-damaging of the initially disadvantaged, resulting from the implementation of the equality-rule. Furthermore, the potential welfare loss to society will be substantially larger in the field of public rather than of private goods.

Date: 2012
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DOI: 10.1080/00346764.2011.632325

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Handle: RePEc:taf:rsocec:v:70:y:2012:i:2:p:181-199