| Marc Fleurbaey, Universite de Cergy-Pontoise Alain Trannoy, Universite de Cergy-Pontoise |
| The Impossibility of a Paretian Egalitarian |
| Session: C-7-5 Sunday 13 August 2000 by Trannoy, Alain |
| We consider the simple model of an exchange economy and we examine whether it is possible to supplement the Paretian quasi-ordering with equity considerations based on multidimensional dominance criteria. The paper begins by a collection of results on multidimensional dominance when we refuse to use prices to compare allocations of bundles. We introduce a distinction between transfer of bundles and transfers of "goods". Whatever the multidi- -mensional dominance criterium considered, it is proved that it is impossible to have a social ranking of allocations satisfying both Pareto and dominance requirements. Once more it illustrates the difficulty to combine non welfarist considerations (dominance criteria) and welfarists one (Pareto condition). In a second best analysis a trade-off between dominance and efficiency is unavoidable. We exploit the connection between the no-domination and a dominance axiom to propose a way to rationalize the set of Pareto-non-dominated allocations. |