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Questions tagged [fairness]

Economic investigations of fairness provide precise definitions for fairness of allocations or decision rules. This tag has very little to do with what you 'feel' to be fair, desirable, just, unless you can define these concepts in a precise, formal, generally applicable way.

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What precisely is bad about externalities?

I'm a layperson with some (long ago) college economics under my belt who is curious about externalities. In particular, why are externalities bad? Intuitively I personally agree externalities are &...
Craig Duncan's user avatar
0 votes
1 answer
58 views

Does any economic theory distinguishes "common bargaining power advantage" from "abusive bargaining power advantage"?

Let me give an example of what I mean by 'abusive bargaining power advantage': People store and sell goods, amid fluctuations of demand and price, in order to make profit. And that's ok. But suppose ...
galmeida's user avatar
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1 vote
1 answer
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What tools the central banks and governments can use to tame profit-led inflation and is the monetary tightening one of such tools?

While the central banks and the governments is not acknowledging it, the private bankers and economists are constantly labeling current inflation trend as the profit led inflation. This morning UBS ...
TomR's user avatar
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4 votes
1 answer
113 views

How do economists explain "If You Want to Win, Tell Your Team It’s Losing (a Little)." along with self-efficacy

How do economists explain: "If You Want to Win, Tell Your Team It’s Losing (a Little)." ? I read this article. And I learnt that— "The relationship between the score and the likelihood ...
Robbinspire's user avatar
0 votes
1 answer
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Specification of the parameters of this utility function [Behavioral Economics]

This is from page 274 of "Advances in Behavioural Economics" by Camerer, Rabin, Loewenstein. This chapter of the book is entitled "A theory about fairness, competition, and cooperation". I have ...
TheLight OI's user avatar
2 votes
3 answers
1k views

Opportunity profits vs. opportunity costs

Having learned that Opportunity costs = the costs for avoided profits are a well established and quite useful economic concept, I wonder how its counterpart is officially called and investigated: ...
Hans-Peter Stricker's user avatar
2 votes
1 answer
86 views

Puzzle: Fairness of consumer price indices

I have learned a bit how the consumer price index (= inflation rate) in Germany is calculated. It's a complex process, which takes into account a lot of measured values (mainly specific prices for ...
Hans-Peter Stricker's user avatar
1 vote
1 answer
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Is corporate tax an argument in equal income tax (from labour and capital) debate and does the return on capital depend on rate of the corporate tax?

In our country we have 25% personal income tax on labour, 15% corporate tax on corporations and 10% personal income tax on income from capital (e.g. dividends). Pundits in our country are saying that ...
TomR's user avatar
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0 votes
1 answer
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In a trading economy with many agents, can two agents with the same income envy eachother?

In a economy with an arbitrary number of agents whose preferences all satisfy the usual equilibrium conditions and with each starting with a random starting endownment, are there any two agents with ...
ejQhZ's user avatar
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-3 votes
1 answer
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"Fairness" exists or not in the real world [closed]

What is "Fairness"? Does "Fairness" exist in the world? Thanks, Marx
Marx's user avatar
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8 votes
4 answers
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Fair and efficient allocation of "family goods"

Consider an exchange economy with two goods, e.g. home furniture (x) and electrical equipment (y). The interesting thing about these goods is that, when a family owns a bundle, all members of the ...
Erel Segal-Halevi's user avatar
2 votes
0 answers
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An economy with no Pareto-efficient envy-free allocations

In a famous paper from 1974, Hal Varian proved (in Theorem 2.3) that: In an economy with homogeneous divisible googs, if all agents have monotonic and convex preferences, then there exists an ...
Erel Segal-Halevi's user avatar
3 votes
1 answer
107 views

Ordinal axiomatization of proportional division

A proportional division is a kind of fair division in which a resource is divided among $n$ partners with subjective valuations, and each partner receives a share which is worth for him at least $1/n$ ...
Erel Segal-Halevi's user avatar