Equity, Envy and Efficiency Under Asymmetric Information
Brown University Economics Working Paper No. 2004-19
8 Pages Posted: 18 May 2005
Date Written: 2004
The set of fair (i.e. envy free and efficient) allocation rules may be empty in well-behaved pure exchange economies if the agents are asymmetrically informed at the time of contracting. In addition, there may exist efficient allocation rules such that every agent envies another.
Suggested Citation: Suggested Citation