The Reciprocity Set

44 Pages Posted: 20 Mar 2019 Last revised: 2 Oct 2023

See all articles by Roland Pongou

Roland Pongou

University of Ottawa - Department of Economics

Jean-Baptiste Tondji

University of Texas Rio Grande Valley (UTRGV) (Formerly University of Texas-Pan American) - Economics and Finance; Department of Economics and Finance, University of Texas Rio Grande Valley

Multiple version iconThere are 3 versions of this paper

Date Written: February 8, 2020

Abstract

We study procedures that embed clauses granting agents the right to oppose actions that are not in their interest, retract actions that face opposition, and punish harmful actions. Our analyses show that coalitional farsighted behaviors under these procedures lead to reciprocal actions. We then introduce a solution concept--\textit{the reciprocity set}--to predict stable outcomes for effectivity function games. We find that under mild conditions, the reciprocity set (1) is always non-empty; (2) only selects efficient outcomes; (3) strategically protects minority outcomes; and (4) is compatible with classical notions of fairness and Rawlsian justice in distributive problems.

Keywords: Reciprocity Set, Pareto-efficiency, Minority, Fairness, Effectivity Functions

JEL Classification: P16, D72, C7, J15, H41

Suggested Citation

Pongou, Roland and Tondji, Jean-Baptiste, The Reciprocity Set (February 8, 2020). Available at SSRN: https://ssrn.com/abstract=3343700 or http://dx.doi.org/10.2139/ssrn.3343700

Roland Pongou

University of Ottawa - Department of Economics ( email )

200 Wilbrod Street
Ottawa, Ontario K1N 6N5
Canada

Jean-Baptiste Tondji (Contact Author)

University of Texas Rio Grande Valley (UTRGV) (Formerly University of Texas-Pan American) - Economics and Finance ( email )

1201 W. University Dr.
Edinburg, TX
United States

Department of Economics and Finance, University of Texas Rio Grande Valley ( email )

1201 W. University Drive
Edinburg, TX 78541
United States
956-665-2825 (Phone)

HOME PAGE: http://https://sites.google.com/site/jbtondjicom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
64
Abstract Views
761
Rank
513,029
PlumX Metrics