Weakening transferable utility: The case of non-intersecting Pareto curves
| Autor: | Tom Potoms, Thomas Demuynck |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Property (philosophy) Matching (graph theory) Economics Assortative matching Pareto efficiency Social Sciences Information asymmetry Rotten kid theorem Business & Economics 0502 economics and business 050207 economics Transferable utility 050205 econometrics Mathematics PURITY 05 social sciences Pareto principle Coase Independence Property Sciences humaines Coase theorem Economie ROTTEN KIDS Rotten Kid Theorem Mathematical economics |
| Zdroj: | Journal of Economics Theory, 188 |
| Popis: | Transferable utility (TU) is a widely used assumption in economics. In this paper, we weaken the TU property to a setting where distinct Pareto frontiers have empty intersections. We call this the no-intersection property (NIP). We show that the NIP is strictly weaker than TU, but still allows to derive several desirable properties. We discuss the NIP in relation to several models where TU has turned out to be a key assumption: models of assortative matching, principal-agent models with asymmetric information, the Coase Independence Property and Becker's Rotten Kid Theorem. |
| Databáze: | OpenAIRE |
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