This content originally appeared on HackerNoon and was authored by Tokenomy
Table of Links
A free and fair economy: definition, existence and uniqueness
Equilibrium existence in a free and fair economy
A free economy with social justice and inclusion
5.1 Equilibrium existence and efficiency in a free economy with social justice
5.2 Choosing a reference point to achieve equilibrium efficiency
Some applications
6.1 Teamwork: surplus distribution in a firm
6.2 Contagion and self-enforcing lockdown in a networked economy
5.1 Equilibrium existence and efficiency in a free economy with social justice
In what follows, we study the existence of equilibrium in an α-free economy with social justice. As defined in Section 3.1, a free economy with social justice admits an equilibrium if the strategic form game derived from that economy possesses a pure strategy Nash equilibrium. A meritocratic planner will choose a higher α when allocating resources since talents and merits have more value in such a society. An egalitarian planner will put a higher weight on equal distribution. It follows that a choice of α reveals a trade-off between market justice and egalitarianism. The good news is that there exists a self-enforcing social contract irrespective of the size of α. We have the result hereunder.
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\ The proof of Corollary 1 is similar to that of Theorem 2. Next, we provide an additional result about Pareto-efficiency of equilibria in a free economy with social justice.
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\ Using Theorem 4, we deduce the following corollary.
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:::info Authors:
(1) Ghislain H. Demeze-Jouatsa, Center for Mathematical Economics, University of Bielefeld (demeze jouatsa@uni-bielefeld.de);
(2) Roland Pongou, Department of Economics, University of Ottawa (rpongou@uottawa.ca);
(3) Jean-Baptiste Tondji, Department of Economics and Finance, The University of Texas Rio Grande Valley (jeanbaptiste.tondji@utrgv.edu).
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:::info This paper is available on arxiv under CC BY 4.0 DEED license.
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This content originally appeared on HackerNoon and was authored by Tokenomy
Tokenomy | Sciencx (2025-09-16T01:34:48+00:00) Market Justice vs. Egalitarianism: The Role of the Alpha Parameter in Economic Equilibrium. Retrieved from https://www.scien.cx/2025/09/16/market-justice-vs-egalitarianism-the-role-of-the-alpha-parameter-in-economic-equilibrium-2/
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