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Author:Iturbe-Ormaetxe, I.
Nieto, J.
Title:On fair allocations and monetary compensations
Journal:Economic Theory
1996 : SPRING, VOL. 7:1, p. 125-138
Index terms:ECONOMIC THEORY
ALLOCATION
COMPENSATION
Language:eng
Abstract:In this paper the authors study fair division problems with the special feature that there exists only one transferable good that everyone likes. This good will be used to compensate some individuals for their differences in other non-transferable resources (like talents and handicaps). In this context the authors test the traditional no-envy solution and they verify that: 1) its ethical content can be a matter of discussion, and 2)frequently it does not select a non-empty set of allocations. The authors propose an extension of this criterion that partially solves the existence problem while also retaining the main ethical properties of the preceding solution.
SCIMA record nr: 146968
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