Liberalism, efficiency, and stability: Some possibility results

van Hees, M., Oct-1999, In : Journal of Economic Theory. 88, 2, p. 294-309 16 p.

Research output: Contribution to journalArticleAcademicpeer-review

  • M van Hees

Drawing on the game-theoretic analysis of rights, this paper re-examines the relation between liberal principles of decision making, on the one hand, and demands for stability and efficiency, on the other. Two possibility results are obtained. First, rights assignments in which individuals enjoy maximal freedom are shown to ensure the stability and efficiency of the decision process: there is always at least one Nash equilibrium with a Pareto-optimal outcome. Second, it is shown that a universal right to be completely passive, together with a mild condition on the social decision mechanism, also guarantees stability and efficiency. (C) 1999 Academic Press.

Original languageEnglish
Pages (from-to)294-309
Number of pages16
JournalJournal of Economic Theory
Issue number2
Publication statusPublished - Oct-1999


  • liberal paradox, rights, collective choice, GAME FORMS, RIGHTS

ID: 3825811