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Kantian Equilibrium

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  • John E. Roemer
Abstract
Consider a game whose strategies are “contributions”. A strategy profile is a Kantian equilibrium if no player would like all players to alter their contributions by the same multiplicative factor. Kantian equilibria are Pareto efficient. We characterize the allocation rules on several domains of environments that can be implemented as Kantian equilibria. The concept unifies the proportional solution on production economies and the linear cost‐share equilibrium on public‐good economies. We study Kantian equilibrium in the prisoner's dilemma, in a voting problem, and in a political economy where redistribution is the issue. The Kantian dictum engenders considerable but not unqualified cooperation.

Suggested Citation

  • John E. Roemer, 2010. "Kantian Equilibrium," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(1), pages 1-24, March.
  • Handle: RePEc:bla:scandj:v:112:y:2010:i:1:p:1-24
    DOI: 10.1111/j.1467-9442.2009.01592.x
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    References listed on IDEAS

    as
    1. Naoki Yoshihara, 2000. "A characterization of natural and double implementation in production economies," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(4), pages 571-599.
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    3. Roemer John E. & Silvestre Joaquim, 1993. "The Proportional Solution for Economies with Both Private and Public Ownership," Journal of Economic Theory, Elsevier, vol. 59(2), pages 426-444, April.
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    7. Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
    8. Sang-Chul Suh, 1994. "A mechanism implementing the proportional solution," Review of Economic Design, Springer;Society for Economic Design, vol. 1(1), pages 301-317, December.
    9. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-350, June.
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