The willingness-to-pay (WTP) and willingness-to-accept (WTA) disparity reported in a rich empirical literature suggests that people have only an imprecise idea of how valuable a good is to them. In this note, we provide axioms that formally relate this imprecision in the evaluation of a good to...

Ever since its introduction by Foley (1967) and Varian (1974), the notion of fairness has been one of the most extensively used notion to evaluate allocations on an ethical basis. Whereas thereis an extensive literature on the efficiency properties of allocations in economies with uncertainty...

Ever since its introduction by Foley (1967) and Varian (1974), the notion of fairness has been one of the most extensively used notion to evaluate allocations on an ethical basis. Whereas thereis an extensive literature on the efficiency properties of allocations in economies with uncertainty...