Strongly Fair Allocations in Economies with Production

01/11/1992

Strongly Fair Allocations in Economies with Production

Lahiri Somdeb

Working Papers

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In this paper we show that essentially the only mechanism which is strongly fair in an economy with production is the equal income marginal cost pricing (EIMCP) mechanism. A variant of the analysis would prove that the only mechanism which guarantees strongly fair net trades is the marginal cost pricing (MCP) mechanism.

IIMA