An Index of Unfairness

Aguiar, V. H., Pongou, R., Serrano, R., & Tondji, J. B. (2019). An Index of Unfairness. In Handbook of the Shapley Value (pp. 31-48). CRC Press Taylor and Francis.

18 Pages Posted: 2 Apr 2019 Last revised: 27 Jul 2021

See all articles by Victor Aguiar

Victor Aguiar

Western University (University of Western Ontario)

Roland Pongou

University of Ottawa - Department of Economics

Roberto Serrano

Brown University

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

Date Written: March 9, 2019

Abstract

Aguiar, Pongou, and Tondji (2018) propose the Shapley distance as a measure of the extent to which output sharing among the stakeholders of an organization can be considered unfair. It measures the distance between an arbitrary pay profile and the Shapley pay profile under a given technology, the latter profile defining the fair distribution. We provide an axiomatic characterization of the Shapley distance and show that it can be used to determine the outcome of an underlying bargaining process. We also present applications highlighting how favoritism in income distribution, egalitarianism, and taxation violate the different ideals of justice that define the Shapley value. The analysis has implications that can be tested using real-world data sets.

Keywords: Shapley value, Shapley distance, (un)fairness, horizontal equity, efficiency, marginality

JEL Classification: C71, C78, D20, D30, J30

Suggested Citation

Aguiar, Victor and Pongou, Roland and Serrano, Roberto and Tondji, Jean-Baptiste, An Index of Unfairness (March 9, 2019). Aguiar, V. H., Pongou, R., Serrano, R., & Tondji, J. B. (2019). An Index of Unfairness. In Handbook of the Shapley Value (pp. 31-48). CRC Press Taylor and Francis., Available at SSRN: https://ssrn.com/abstract=3350034 or http://dx.doi.org/10.2139/ssrn.3350034

Victor Aguiar

Western University (University of Western Ontario) ( email )

1151 Richmond
London, Ontario N6A5C2
Canada

Roland Pongou

University of Ottawa - Department of Economics ( email )

200 Wilbrod Street
Ottawa, Ontario K1N 6N5
Canada

Roberto Serrano

Brown University ( email )

64 Waterman Street
Providence, RI 02912
United States
401-863-1036 (Phone)
401-863-1970 (Fax)

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

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