Pareto Efficiency with Costly Transfers.

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Abstract:

The concept of Pareto efficiency, as ordinarily applied, implies that costless redistributive transfers are possible. This paper generalizes the concept to a simple case where transfers of a given good involve losses mesasurable in that good. The Pareto efficiency of a given allocation then depends on the initial distribution endowments. For a given allocation, then, we can ask 1 whether there exists any endowment allocation for which the given allocation is Pareto efficient and 2 if there is, what is the class of endowment allocations for which it is efficient. These questions are answered in the paper.

Author(s):
Arrow, Kenneth J.
Author Organization(s):
HARVARD UNIV CAMBRIDGE MASS
Descriptive Note:
Technical rept.,
Pagination:
0020

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
TR-33
Contract/Grant Number(s):
N00014-76-C-0135
 Subject Terms
Joint Capability Areas:
JCA_1_Force Support; JCA_1.2_Force Preparation; JCA_1.2.6_Concepts; JCA_1.3_Human Capital Management; JCA_5_Command and Control; JCA_1.3.1_Personnel and Family Support; JCA_5.3_Planning
Modernization Areas:
Microelectronics
Communities of Interest:
Materials and Manufacturing Processes
Descriptor(s):
*ECONOMIC MODELS, DECISION MAKING, DISTRIBUTION, EFFICIENCY, COSTS, ALLOCATIONS, RESOURCES, TRANSFER
Field(s)/Group(s):
Economics and Cost Analysis, Operations Research
Keyword(s):
*Pareto allocations, wunr47004
Report Date:
1979 May 01