William Baumol's Fairness Assumption

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Definitions

• Envy:

If an individual, A, prefers the bundle of goods held by another individual, B, to his own bundle, he is said to envy individual B.

• Fairness:

A distribution is fair if no individual envies another.

• Superfairness:

• Strict Superfairness:

If the bundle received by each individual is strictly preferred by that individual to the bundles received by