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Monotonicity and the Pareto principle

Author

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  • Amiel, Yoram
  • Cowell, Frank

Abstract

We examine the implications of three similar criteria that are commonly used in welfare economics and the analysis of inequality and poverty - income dominance, monotonicity and the Pareto principle - within the context of income-distribution comparisons. We show that whilst there is a simple logical relationship between the first two criteria, the third is neither implied by nor implies the other two unless an assumption of individual indifference to income distribution is made.

Suggested Citation

  • Amiel, Yoram & Cowell, Frank, 1993. "Monotonicity and the Pareto principle," LSE Research Online Documents on Economics 6625, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6625
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    File URL: http://eprints.lse.ac.uk/6625/
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    Cited by:

    1. Thomas Kourouxous & Thomas Bauer, 2019. "Violations of dominance in decision-making," Business Research, Springer;German Academic Association for Business Research, vol. 12(1), pages 209-239, April.

    More about this item

    Keywords

    Monotonicity; Pareto superiority; income dominance;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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