We define a new solution concept for transferable utility cooperative games in characteristic function form, in a framework where individuals believe in equality as a desirable social goal, although private preferences dictate selfish behavior. This latter aspect implies that the solution outcome(s) must satisfy core-like participation constraints while the concern for equality entails choice of Lorenz maximal elements from within the set of payoffs satisfying the participation constraints. Despite the Lorenz domination relation being a partial ranking, we show that the egalitarian solution is unique whenever it exists. Moreover, for convex games, the solution is in the core and Lorenz dominates every other core allocation.
MLA
Dutta, Bhaskar, and Debraj Ray. “A Concept of Egalitarianism Under Participation Constraints.” Econometrica, vol. 57, .no 3, Econometric Society, 1989, pp. 615-635, https://www.jstor.org/stable/1911055
Chicago
Dutta, Bhaskar, and Debraj Ray. “A Concept of Egalitarianism Under Participation Constraints.” Econometrica, 57, .no 3, (Econometric Society: 1989), 615-635. https://www.jstor.org/stable/1911055
APA
Dutta, B., & Ray, D. (1989). A Concept of Egalitarianism Under Participation Constraints. Econometrica, 57(3), 615-635. https://www.jstor.org/stable/1911055
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
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