Article ID Journal Published Year Pages File Type
5058163 Economics Letters 2016 4 Pages PDF
Abstract

I consider an exchange economy in which each agent's preferences are given by Ui=ui+θF, where ui is a standard utility function, F is a social objective function and θ is the weight F receives. Both F and θ are common to all individuals. I show that F's equilibrium value may be a decreasing function of θ. I also show that if F is a social welfare function whose arguments are the ui's, then the economy's equilibria are independent of θ.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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