Fair social orderings when agents have unequal production skills

Abstract.We develop an approach which escapes Arrow’s impossibility by relying on information about agents’ indifference curves instead of utilities. In a model where agents have unequal production skills and different preferences, we characterize social ordering functions which rely only on ordinal non-comparable information about individual preferences. These social welfare functions are required to satisfy properties of compensation for inequalities in skills, and equal access to resources for all preferences.

[1]  A. Kirman,et al.  Fairness and Envy , 1974 .

[2]  Koichi Tadenuma,et al.  Efficiency First or Equity First? Two Principles and Rationality of Social Choice , 1998, J. Econ. Theory.

[3]  Kotaro Suzumura,et al.  On pareto-efficiency and the no-envy concept of equity , 1981 .

[4]  William Thomson,et al.  A refinement and extension of the no-envy concept , 1989 .

[5]  J. Roemer Theories of Distributive Justice , 1997 .

[6]  John Rawls,et al.  Social unity and primary goods , 1982 .

[7]  M. LeBreton Arrovian Social Choice on Economic Domains , 1994 .

[8]  Erik Schokkaert,et al.  Responsibility sensitive egalitarianism and optimal linear income taxation , 2004, Math. Soc. Sci..

[9]  P. Hammond Equity, Arrow's Conditions, and Rawls' Difference Principle , 1976 .

[10]  Kotaro Suzumura Rational choice, collective decisions, and social welfare: Bibliography , 1983 .

[11]  Bengt Hansson,et al.  The independence condition in the theory of social choice , 1973 .

[12]  L. A. Goodman,et al.  Social Choice and Individual Values , 1951 .

[13]  Ronald Dworkin,et al.  What is Equality? Part 2: Equality of Resources , 1981 .

[14]  M. Fleming,et al.  A Cardinal Concept of Welfare , 1952 .

[15]  Donald E. Campbell,et al.  Information and preference aggregation , 2000, Soc. Choice Welf..

[16]  Walter Bossert,et al.  Responsibility, talent, and compensation: A second-best analysis , 1999 .

[17]  Marc Fleurbaey,et al.  On fair compensation , 1994 .

[18]  Marc Fleurbaey Théories économiques de la justice , 1996 .

[19]  C. d'Aspremont,et al.  Equity and the Informational Basis of Collective Choice , 1977 .

[20]  Patrick Suppes,et al.  Some formal models of grading principles , 1966, Synthese.

[21]  G. Debreu Topological Methods in Cardinal Utility Theory , 1959 .

[22]  K. Suzumura Rational choice, collective decisions, and social welfare: Notes , 1983 .

[23]  Michel Le Breton Arrovian Social Choice on Economic Domains , 1997 .

[24]  K. Arrow A Difficulty in the Concept of Social Welfare , 1950, Journal of Political Economy.

[25]  François Maniquet,et al.  Fair allocation with unequal production skills: The no envy approach to compensation , 1996 .

[26]  A. Sen,et al.  The Possibility of Social Choice , 1999 .

[27]  Alain Trannoy,et al.  To what Extent do Fiscal Regimes Equalize Opportunities for Income Acquisition Among citizens , 2003 .

[28]  Kotaro Suzumura On the Possibility of "Fair" Collective Choice Rule , 1981 .

[29]  William Thomson,et al.  Axiomatic Analysis of Resource Allocation Problems , 1997 .

[30]  J. Mirrlees An Exploration in the Theory of Optimum Income Taxation an Exploration in the Theory of Optimum Income Taxation L Y 2 , 2022 .

[31]  François Maniquet,et al.  Optimal income taxation: an ordinal approach , 1998 .

[32]  D. Primont,et al.  Duality, Separability, and Functional Structure: Theory and Economic Applications , 1978 .

[33]  David Schmeidler,et al.  A Difficulty in the Concept of Fairness , 1974 .

[34]  H. Varian Two Problems in the Theory of Fairness , 1976 .

[35]  W. Thomson Consistent Allocation Rules , 1996 .

[36]  François Maniquet,et al.  Utilitarianism versus fairness in welfare economics , 2007 .

[37]  Terrence E. Daniel A revised concept of distributional equity , 1975 .

[38]  A. Chaudhuri,et al.  Some implications of an intensity measure of envy , 1986 .

[39]  David Schmeidler,et al.  Decentralization and Income Distribution in Socialist Economies , 1978 .