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Publication Date:
April 2012
ISSN:
1935-1704
DOI:
10.1515/1935-1704.1789

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Ed. by Cervellati, Matteo / Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Schipper, Burkhard

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Characterizing Welfare-egalitarian Mechanisms with Solidarity When Valuations are Private Information

Duygu Yengin1

1University of Adelaide, duygu.yengin@adelaide.edu.au

Citation Information: The B.E. Journal of Theoretical Economics. Volume 12, Issue 1, Pages –, ISSN (Online) 1935-1704, DOI: 10.1515/1935-1704.1789, April 2012

Publication History:
Published Online:
2012-04-23

In the problem of assigning indivisible goods and monetary transfers, we characterize welfare-egalitarian mechanisms (that are decision-efficient and incentive compatible) with an axiom of solidarity under preference changes and a fair ranking axiom of order preservation. This result is in line with characterizations of egalitarian rules with solidarity in other economic models. We also show that we can replace order-preservation with egalitarian-equivalence or no-envy (on the subadditive domain) and still characterize the welfare-egalitarian class. However, if we weaken order preservation to symmetry, mechanisms that are not welfare-egalitarian exist. We also study upper bounds on deficit and welfare lower bounds that characterize subclasses of the welfare-egalitarian class.

Keywords: welfare egalitarianism; solidarity; order preservation; egalitarian-equivalence; noenvy; distributive justice; NIMBY problems; imposition of tasks; allocation of indivisible (public) goods and money; the Groves mechanisms; strategy-proofness; unanimity; symmetry; fair allocation

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