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| Satoshi Nakada |
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| ''Envy-free allocation of indivisible goods with money and externalities'' |
| ( 2018, Vol. 38 No.1 ) |
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| This paper considers an envy-free allocation of a single indivisible good in the quasi-linear utility environment where a monetary transfer is allowed and externalities among agents exist.
We show that an envy-free allocation does not exist if a degree of the externalities is high enough and there are two groups of agents: one group of agents can but the other group of agents cannot enjoy externalities.
We also show that both efficient allocations and envy-free allocations are generally incompatible whereas they are always compatible without externalities. |
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| Keywords: envy-free allocation, indivisible goods, network, externality |
JEL: D6 - Welfare Economics: General
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| Manuscript Received : Apr 07 2017 | | Manuscript Accepted : Jan 21 2018 |
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