Weakening transferable utility: The case of non-intersecting Pareto curves

• 成果类型: Article
• 署名作者: Demuynck, Thomas; Potoms, Tom
• 署名单位: Universite Libre de Bruxelles; University of Sussex
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2020.105035
• 发表日期: 2020
• 关键词: Pareto efficiency; Transferable utility; assortative matching; Coase Independence Property; Rotten kid theorem

摘要

Transferable utility (TU) is a widely used assumption in economics. In this paper, we weaken the TU property to a setting where distinct Pareto frontiers have empty intersections. We call this the no-intersection property (NIP). We show that the NIP is strictly weaker than TU, but still allows to derive several desirable properties. We discuss the NIP in relation to several models where TU has turned out to be a key assumption: models of assortative matching, principal-agent models with asymmetric information, the Coase Independence Property and Becker's Rotten Kid Theorem. (C) 2020 Elsevier Inc. All rights reserved.