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Egalitarian equivalence under asymmetric information

Article
Author/s: 
David Pérez-Castrillo, David Wettstein and Geoffroy de Clippel
Games and Economic Behavior
Issue number: 
1
Publisher: 
Elsevier
Year: 
2012
Journal pages: 
413–423
Webpage [1]
We propose a definition of egalitarian equivalence that extends Pazner and Schmeidlerʼs (1978) concept to environments with incomplete information. If every feasible allocation rule can be implemented by an incentive compatible mechanism (as, for instance, in the case of non-exclusive information), then interim egalitarian equivalence and interim incentive efficiency remain compatible, as they were under complete information. When incentive constraints are more restrictive, on the other hand, the two criteria may become incompatible.

Source URL:http://coalitiontheory.net/content/egalitarian-equivalence-under-asymmetric-information

Links
[1] http://www.sciencedirect.com/science/article/pii/S0899825611001989