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