A Free and Fair Economy: A Game of Justice and Inclusion

Demeze-Jouatsa G-H, Pongou R, Tondji J-B (2021) Center for Mathematical Economics Working Papers; 653.
Bielefeld: Center for Mathematical Economics.

Diskussionspapier | Veröffentlicht | Englisch
 
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Autor*in
Demeze-Jouatsa, Ghislain-HermanUniBi ; Pongou, Roland; Tondji, Jean-Baptiste
Abstract / Bemerkung
Frequent violations of fair principles in real-life settings raise the fundamental question of whether such principles can guarantee the existence of a self-enforcing equilibrium in a free economy. We show that elementary principles of distributive justice guarantee that a pure-strategy Nash equilibrium exists in a finite economy where agents freely (and non- cooperatively) choose their inputs and derive utility from their pay. Chief among these principles is that: 1) your pay should not depend on your name; and 2) a more productive agent should not earn less. When these principles are violated, an equilibrium may not exist. Moreover, we uncover an intuitive condition|technological monotonicity|that guarantees equilibrium uniqueness and efficiency. We generalize our findings to economies with social justice and inclusion, implemented in the form of progressive taxation and redistribution, and guaranteeing a basic income to unproductive agents. Our analysis uncovers a new class of strategic form games by incorporating normative principles into non-cooperative game theory. Our results rely on no particular assumptions, and our setup is entirely non- parametric. Illustrations of the theory include applications to exchange economies, surplus distribution in a firm, contagion and self-enforcing lockdown in a networked economy, and bias in the academic peer-review system.
Stichworte
Market justice; Social justice; Inclusion; Ethics; Discrimination; Self-enforcing contracts; Fairness in non-cooperative games; Pure strategy Nash equilibrium; Efficiency
Erscheinungsjahr
2021
Serientitel
Center for Mathematical Economics Working Papers
Band
653
Seite(n)
49
ISSN
0931-6558
Page URI
https://pub.uni-bielefeld.de/record/2957470

Zitieren

Demeze-Jouatsa G-H, Pongou R, Tondji J-B. A Free and Fair Economy: A Game of Justice and Inclusion. Center for Mathematical Economics Working Papers. Vol 653. Bielefeld: Center for Mathematical Economics; 2021.
Demeze-Jouatsa, G. - H., Pongou, R., & Tondji, J. - B. (2021). A Free and Fair Economy: A Game of Justice and Inclusion (Center for Mathematical Economics Working Papers, 653). Bielefeld: Center for Mathematical Economics.
Demeze-Jouatsa, G. - H., Pongou, R., and Tondji, J. - B. (2021). A Free and Fair Economy: A Game of Justice and Inclusion. Center for Mathematical Economics Working Papers, 653, Bielefeld: Center for Mathematical Economics.
Demeze-Jouatsa, G.-H., Pongou, R., & Tondji, J.-B., 2021. A Free and Fair Economy: A Game of Justice and Inclusion, Center for Mathematical Economics Working Papers, no.653, Bielefeld: Center for Mathematical Economics.
G.-H. Demeze-Jouatsa, R. Pongou, and J.-B. Tondji, A Free and Fair Economy: A Game of Justice and Inclusion, Center for Mathematical Economics Working Papers, vol. 653, Bielefeld: Center for Mathematical Economics, 2021.
Demeze-Jouatsa, G.-H., Pongou, R., Tondji, J.-B.: A Free and Fair Economy: A Game of Justice and Inclusion. Center for Mathematical Economics Working Papers, 653. Center for Mathematical Economics, Bielefeld (2021).
Demeze-Jouatsa, Ghislain-Herman, Pongou, Roland, and Tondji, Jean-Baptiste. A Free and Fair Economy: A Game of Justice and Inclusion. Bielefeld: Center for Mathematical Economics, 2021. Center for Mathematical Economics Working Papers. 653.
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2021-09-16T13:33:35Z
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