General Equilibrium Theory (GE) scrutinizes the ability of markets to achieve efficient allocation of resources. Our main purpose is, in the framework to the GE to analyze, the possibility of design a mechanism enabling agents to make independent decisions compatible with social welfare. More...

The Pareto optimal concept does not concern with fairness or equality, it is a concept related to efficiency. In this paper, using techniques from the general equilibrium theory, we relate efficiency, fairness and stability of an economy

In this paper we show that in a pure exchange economy where social weights and total resources are fixed there is no possibility to improve the social welfare by means of efficient reallocations of the resources. However, if social weights are not fixed but can be selected from a particular set,...