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On the Measurement of Opportunity-dependent Inequality under Uncertainty

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  • Xiangyu Qu

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique)

Abstract

The actual level of income inequality and the scope of allocation options influence the individual as well as social perception of inequality under uncertainty. We show how incorporating opportunity concerns under uncertainty would affect inequality perception. An axiomatic system on preferences is suggested and demonstrated to characterize a measure of opportunity-dependent index under uncertainty, which would potentially provide a satisfactory answer to the puzzling observation that many individuals perceive higher level of income inequality although its actual level is low.

Suggested Citation

  • Xiangyu Qu, 2022. "On the Measurement of Opportunity-dependent Inequality under Uncertainty," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03603586, HAL.
    • Handle: RePEc:hal:cesptp:hal-03603586
    DOI: 10.1016/j.jmateco.2022.102690
    Note: View the original document on HAL open archive server: https://hal.science/hal-03603586
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