Fair allocation with unequal production skills: The no envy approach to compensation

Marc Fleurbaey, François Maniquet

Research output: Contribution to journalArticle

42 Scopus citations

Abstract

We consider a simple production model and assume that the agents have unequal production skills that can in no way be considered their responsibility. We study how it is possible, if at all, to compensate for differential skills while holding agents responsible for their preferences towards consumption and leisure. Our main result is a characterization of a class of solutions, called the Reference Welfare Equivalent Budget. In this class, each solution is based on reference preferences, and selects allocations in which the agents' budget sets are deemed equivalent by these reference preferences.

Original languageEnglish (US)
Pages (from-to)71-93
Number of pages23
JournalMathematical social sciences
Volume32
Issue number1
DOIs
StatePublished - Aug 1996
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Social Sciences(all)
  • Psychology(all)
  • Statistics, Probability and Uncertainty

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