Interdependent preferences in the design of equal-opportunity policies
(2008) Research on Economic Inequality — Vol. 16, p. 49-65 (2008)
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- Abstract
- We study mechanisms to construct equal-opportunity policies for resource allocation. In our model, agents enjoy welfare as a function of the effort they expend and the amount of a socially provided resource they consume. Nevertheless, agents have interdependent preferences, that is, they not only care about their own allocation, but also about their peers' allocations. As in the standard approach to equality of opportunity, the aim is to allocate the social resource so that welfare across individuals at the same relative effort level is as equal as possible. We show how pursing this same aim while assuming that agents have interdependent preferences might crucially alter the results.
- Affiliations
Universidad de Malaga Departamento de Teoria e Historia Economica
Citations
Moreno-Ternero, J. D. (2008). Interdependent preferences in the design of equal-opportunity policies. Research on Economic Inequality, 16, 49-65. https://doi.org/10.1016/S1049-2585(08)16003-3 (Original work published 2008)