Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202601 
Year of Publication: 
2018
Series/Report no.: 
Working Paper No. 2018-9
Publisher: 
Brown University, Department of Economics, Providence, RI
Abstract: 
Aguiar et al. (2018) propose the Shapley distance as a measure of the extent to which output sharing among the stakeholders of an organization can be considered unfair. It measures the distance between an arbitrary pay profile and the Shapley pay profile under a given technology, the latter profile defining the fair distribution. We provide an axiomatic characterization of the Shapley distance, and show that it can be used to determine the outcome of an underlying bargaining process. We also present applications highlighting how favoritism in income distribution, egalitarianism, and taxation violate the different ideals of justice that define the Shapley value. The analysis has implications that can be tested using real-world data sets.
Subjects: 
Shapley value
Shapley distance
(un)fairness
horizontal equity
efficiency
marginality
JEL: 
C71
C78
D20
D30
J30
Document Type: 
Working Paper

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