Cooperative Production: A Comparison of Welfare Bounds

In the production model with a one-input–one-output technology, we study welfare lower bounds that give a guarantee of welfare to each agent independent of the others' preferences. We obtain characterizations of egalitarian-equivalent allocation rules on the basis of two weak lower bounds, in striking contrast with Moulin's characterization of the equal budget Walrasian solution on a slightly smaller domain with a more demanding lower bound.Journal of Economic LiteratureClassification Numbers: C71, D63.