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- W351732888 abstract "This chapter reviews the interactions between the economic agents, consumer and producer. An economy consists of a list of agents, consumers and producers. Furthermore, an initial endowment for the economy as a whole must be specified, that is a commodity bundle. This initial endowment may be used as input in production or it may be consumed. In the description of the economy, the list of agents gives a specification of the agents' characteristics, consumption sets, and utility functions for consumers, production sets for producers. For all its advantages, the concept of Pareto optimality is seen to have its drawbacks as well, at least if allocations in society are desired to have some properties of fairness or equal treatment of its members. The property of Pareto optimality is a rather weak one, as the set of Pareto optimal allocations contains quite unreasonable elements. However, this weakness is also in some sense a force; working with Pareto optimality, one gets a set of useful results to be applied to particular allocations that are Pareto optimal and have some other properties depending on the context." @default.
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- W351732888 date "1990-01-01" @default.
- W351732888 modified "2023-09-27" @default.
- W351732888 title "OPTIMALITY AND DECENTRALIZATION" @default.
- W351732888 doi "https://doi.org/10.1016/b978-0-444-88644-6.50009-6" @default.
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