Social Enterprise

Egalitarianism Under Incomplete Information

Date Added: Apr 2010
Format: PDF

The present paper discusses possible extensions of the egalitarian principle to environments with asymmetric information. The approach will be primarily axiomatic, focusing on the characteristic property of monotonicity, which is as straightforward under asymmetric information as it is under complete information: no member of the society should be worse off (whatever his or her private information) when more collective decisions are available. Efficiency and Monotonicity are also incompatible under complete information in the absence of transferable utilities.