Econometrica Vol. 52 No. 5 1984
Implementing Efficient Egalitarian Equivalent Allocations
Abstract
This paper proposes a procedure for implementing efficient egalitarian equivalent allocations in an exchange economy, using the perfect equilibrium concept. This procedure is an extension of the divide and choose method in two ways: it is defined for more than two agents and the divider's advantage is removed by auctioning the role of divider among the agents (as in Crawford [1]).Thus, in contrast with other equilibrium concepts (Nash, dominant), the perfect one solves the efficiency-justice dilemma.
- DOI
- 10.2307/1910993
- Volume
- 52
- Issue
- 5
- Pages
- 1167
- Sources
- bibtex:phds-export.bib crossref openalex