This paper deals with the strong constrained egalitarian solution introduced by Dutta and Ray (1991). We show that this solution yields the weak constrained egalitarian allocations (Dutta and Ray, 1989) associated to a finite family of convex games. This relationship makes it possible to define a systematic way of computing the strong constrained egalitarian allocations for any arbitrary game, ...

A choice function is sequentially rationalizable if there is an ordered collection of asymmetric binary relations that identifies the selected alternative in every choice problem. We propose a property, F-consistency, and show that it characterizes the notion of sequential rationalizability. F-consistency is a testable property that highlights the behavioral aspects implicit in sequentially rat...

Polarization indices presented up to now have only focused their attention on the distribution of income/wealth. However, in many circumstances income is not the only relevant dimension that might be the cause of social con‡ict, so it is very important to have a social polarization index able to cope with alternative dimensions. In this paper we present an axiomatic characterization of one of s...

This paper investigates experimentally how organisational decision processes affect the moral motivations of actors inside a firm that must forego profits to reduce harming a third party. In a “vertical” treatment, one insider unilaterally sets the harm-reduction strategy; the other can only accept or quit. In a “horizontal” treatment, the insiders decide by consensus. Our 2-by-2 design also co...

Ramsey pricing has been proposed in the pharmaceutical industry as a principle to price discriminate among markets while allowing to recover the (fixed) R&D cost. However, such analyses neglect the presence of insurance or the fund raising costs for drug reimbursement. By incorporating these new elements, we aim at providing some building blocks towards an economic theory merging Ramsey pricing...

In this paper, we analyze how the introduction of habits and aspirations affects the distribution of wealth when individuals’ labor productivity is subject to idiosyncratic shocks and bequests arise from a joy-of-giving motive. In the presence of either bequests or aspirations, labor income shocks are transmitted intergenerationally and this transmission, together with the contemporaneous incom...

We consider Salim Rashid’s asymptotic version of David Schmeidler’s theorem on the purification of Nash equilibria. We show that, in contrast to what is stated, players’ payoff functions have to be selected from an equicontinuous family in order for Rashid’s theorem to ∗I wish to thank Mário Páscoa and Myrna Wooders for very helpful comments. All remaining errors are, of course, mine. †Address:...

STEFANO FAVARO1,3,* , ANTONIO LIJOI2,3 and IGOR PRÜNSTER1,3,** 1Dipartimento di Statistica e Matematica Applicata, Università degli Studi di Torino C.so Unione Sovietica 218/bis, 10134 Torino, Italy. E-mail: *[email protected]; **[email protected] 2Dipartimento di Economia Politica e Metodi Quantitativi, Università degli Studi di Pavia, Via San Felice 5, 27100 Pavia, Italy. E-mail: lijoi...