Fair Net Trades

Two problems in the theory of fairness

“…An allocation x is called fair iff it is both equitable and pareto efficient. These and related definitions have been analyzed by several authors, among them Feldman and Kirman (1974), Foley (1967), Kolm (1972), Schmeidler and Vind (1972), Pazner and Schmeidler (1974),…”

Entitlement Theory of Justice and End-State Fairness in the Allocation of Goods

“…Following a similar line of investigation, Roemer (1988Roemer ( , 1989, Moulin (1987Moulin ( , 1990, and Roemer and Silvestre (1993) propose generalizations of Locke's theory in the framework of common resources under a 2 This is reminiscent of the classical notion of fair net trades, introduced by Schmeidler and Vind (1972). 3 While no-envy provides a specific standard for fair allocations, the contractarian theories only provide the environment of impartial decision making and leave it up to the "rational" decision maker to come up with the exact standard of fair allocations; namely, the utilitarian allocation for John Harsanyi and the di↵erence principle for John Rawls. decreasing-returns-to-scale technology, which gives rise to the so-called tragedy of the commons.…”

“…An allocation z is a Walrasian equilibrium allocation if there exists a vector of prices p, such that, for each i 2 N , and each z 0 16 It is reasonable to formulate justice in transfer more strongly, adding, to voluntary exchange, a criterion of fair trades, e.g., fair net trades by Schmeidler and Vind (1972). In fact, as long as we adopt Walrasian exchange rule in the exchange stage, the stronger version of justice in transfer will be satisfied and so numerous marketbased allocation rules characterized in our results will also satisfy the stronger version.…”

Competitive Market Mechanisms as Social Choice Procedures

“…The following discussion of "equal rights to trade" develops some of the ideas in Schmeidler and Vind (1972). It offers a different fairness characterization of Walrasian equilibrium without lump-sum transfers.…”

“…20 This currently accepted terminology follows Varian (1974). It departs from Schmeidler and Vind (1972) who use "fair" to mean what is here called "envy free". I have also replaced their "strongly fair" by "strongly envy free".…”