A Social Procedure for Choosing Fair Allocation Rules - Formalizing the Rawlsian Principles of Justice -

In this paper, we consider and formulate, in cooperative production economies, a social procedure for choosing fair allocation rules, basing it upon the argument of the Rawlsian two principles of justice (Rawls (1971)). First, we adopt Sen's Capability (Sen (1980, 1985)) index to evaluate individual states, instead of income or welfare. Second, we define individual i's judgement over allocation rules as i's proposing social welfare function which assigns to each economic environment an ordering over ordered pairs of allocation rules and feasible allocations.