All Questions
Tagged with fairness pareto-efficiency
3 questions
1
vote
1
answer
159
views
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 &...
- 21
8
votes
4
answers
537
views
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 ...
- 3,115
2
votes
0
answers
836
views
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 ...
- 3,115