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Articles 1 - 4 of 4
Full-Text Articles in Social and Behavioral Sciences
Does Dynamic Market Competition With Technological Innovation Leave No One Behind?, Yongsheng Xu, Naoki Yoshihara
Does Dynamic Market Competition With Technological Innovation Leave No One Behind?, Yongsheng Xu, Naoki Yoshihara
Economics Department Working Paper Series
In this paper, we examine the performance of the market mechanism by focusing on whether no one, in the ‘long-run’, can be left behind with technological innovation in the economy. We show that the market mechanism with technological innovation unavoidably leaves some individuals behind. We extend this negative result to a broader class of resource allocation mechanisms.
Efficiency Invites Divide And Coercion In The Age Of Increasing Returns To Scale, Yongsheng Xu, Naoki Yoshihara
Efficiency Invites Divide And Coercion In The Age Of Increasing Returns To Scale, Yongsheng Xu, Naoki Yoshihara
Economics Department Working Paper Series
In the presence of (at least locally) increasing returns to scale technologies, the paper asks the question: does there exist an economic system which implements Pareto efficient allocations and respects the voluntary participation principle? To answer this question, the paper formulates an economic system as an allocation rule under economies with non-convex production possibility sets, and proposes a few weaker axioms to represent the voluntary participation principle. Then, the paper shows that any Pareto efficient allocation rule satisfies none of the axioms of the voluntary participation principle. The result suggests that pursuing Pareto efficiency in the presence of increasing returns …
Entitlement Theory Of Justice And End-State Fairness In The Allocation Of Goods, Biung-Ghi Ju, Juan D. Moreno-Ternero
Entitlement Theory Of Justice And End-State Fairness In The Allocation Of Goods, Biung-Ghi Ju, Juan D. Moreno-Ternero
Economics Department Working Paper Series
Robert Nozick allegedly introduced his liberal theory of private ownership as an objection to theories of end-state justice. Nevertheless, we show that, in a stylized framework for the allocation of goods in joint ventures, both approaches can be seen as complementary. More precisely, in such a context, self-ownership (the basis for Nozick’s entitlement theory of justice) followed by voluntary transfer (Nozick’s principle of just transfer) can lead to end-state fairness (as well as Pareto efficiency). Furthermore, under a certain solidarity condition, the only way to achieve end-state fairness, following Nozick’s procedure, is to endorse an egalitarian rule for the initial …
Fair Allocation Of Disputed Properties, Biung-Ghi Ju, Juan D. Moreno-Ternero
Fair Allocation Of Disputed Properties, Biung-Ghi Ju, Juan D. Moreno-Ternero
Economics Department Working Paper Series
We model problems of allocating disputed properties as generalized exchange economies. Therein, agents have preferences and claims over multiple goods, and the social endowment of each good may not be sufficient to satisfy all individual claims. We focus on market-based allocation rules that impose a two-step procedure: assignment of rights based on claims first, and voluntary exchange based on the assigned rights afterwards. We characterize three focal egalitarian rights-assignment rules that guarantee that the allocation rules are fair. We apply our results to problems of greenhouse gas emissions and contested water rights.