Dividing bads under additive utilities

Anna Bogomolnaia, Hervé Moulin, Fedor Sandomirskiy, Elena Yanovskaia

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

Abstract

We compare the Egalitarian rule (aka Egalitarian Equivalent) and the Competitive rule (aka Comeptitive Equilibrium with Equal Incomes) to divide bads (chores). They are both welfarist: the competitive disutility profile(s) are the critical points of their Nash product on the set of efficient feasible profiles. The C rule is Envy Free, Maskin Monotonic, and has better incentives properties than the E rule. But, unlike the E rule, it can be wildly multivalued, admits no selection continuous in the utility and endowment parameters, and is harder to compute. Thus in the division of bads, unlike that of goods, no rule normatively dominates the other.

Original languageEnglish (US)
Pages (from-to)395-417
Number of pages23
JournalSocial Choice and Welfare
Volume52
Issue number3
DOIs
StatePublished - Mar 14 2019
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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