On fair compensation

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102 Scopus citations


This paper analyses the problems arising in the pure exchange fair division model, when some dimensions of the resources are personal, fixed, and cannot be redistributed. The remaining resources must then be allocated in a compensatory way. A set of desirable normative properties is defined. No-envy satisfies these properties, but is not generally non-empty in this setting and other criteria are examined, for which existence results are given. General impossibility results obtain. In particular, it is generally impossible to compensate fully and only for differential personal resources, when preferences differ.

Original languageEnglish (US)
Pages (from-to)277-307
Number of pages31
JournalTheory and Decision
Issue number3
StatePublished - May 1994
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • General Decision Sciences
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • General Economics, Econometrics and Finance
  • Applied Psychology
  • Computer Science Applications
  • General Social Sciences


  • Compensation
  • equality of resources
  • extended preferences
  • justice
  • no-envy


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