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Resource-envy-free and efficient allocations: A new solution for production economies with dedicated factors
Journal of Mathematical Economics ( IF 1.0 ) Pub Date : 2020-08-01 , DOI: 10.1016/j.jmateco.2020.03.009
Laurence Kranich

Abstract I consider the problem of determining an equitable and efficient allocation of resources in production economies with factors which must be dedicated to production and cannot be consumed directly. First, I show that in such economies envy-free and efficient allocations exist under standard assumptions. However, I argue this notion of fairness is unsuitable for the present context. I then introduce a new notion of fairness, which I call resource-envy-freeness. First, I associate with each consumption bundle its resource footprint consisting of the vector of factors used to produce it. I then show that preferences over consumption bundles can be extended to preferences over factor bundles. An allocation is resource-envy-free if no agent prefers another agent’s resource footprint to its own. The analysis of resource-envy-free allocations in production is exactly analogous to the analysis of envy-free allocations in exchange. I establish that resource-envy-free and efficient allocations exist under standard assumptions, and I demonstrate that such allocations are intuitively appealing.

中文翻译:

无资源嫉妒和高效分配:具有专用要素的生产经济的新解决方案

摘要 我考虑了在生产经济体中确定资源的公平和有效配置的问题,这些经济体的要素必须专用于生产,不能直接消费。首先,我表明在这些经济体中,在标准假设下存在无嫉妒且有效的分配。然而,我认为这种公平的概念不适用于目前的情况。然后我引入了一个新的公平概念,我称之为资源嫉妒自由。首先,我将每个消费束与它的资源足迹相关联,该资源足迹由用于生产它的因素向量组成。然后我证明了对消费束的偏好可以扩展到对要素束的偏好。如果没有代理更喜欢另一个代理的资源足迹而不是自己的资源占用,则分配是无资源嫉妒的。对生产中无资源嫉妒分配的分析与对交换中无嫉妒分配的分析完全相似。我确定在标准假设下存在无资源嫉妒和高效的分配,并且我证明这种分配在直觉上很有吸引力。
更新日期:2020-08-01
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