Inequity-averse preferences in general equilibrium
نویسندگان
چکیده
We study the stabilitywith respect to the introduction of opportunitybased inequity aversion a la Dufwenberg et al. (2011) of three welfare properties satisfiedbycompetitive equilibria in self-regarding economies: (i) Pareto efficiencymay not be a stable property; (ii) undomination with respect to income redistribution is a stablepropertywhenever themarginal indirect utility of income has no extreme variations; and (iii) generically (endowment-wise) market-constrained efficiency is a stable property. JEL classification: D63, C72.
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