Envy-free rights assignments and self-oriented preferences

Very recently a new solution to Sen's “Impossibility of a Paretian liberal” has been suggested where the focus is on the rights assignments per se (Austen-Smith, 1979). It was shown that the concept of fairness, when applied to rights, admits the existence of social decision functions which satisfy Sen's original conditions. Unfortunately this result collapses when individuals have rights over more than one pair of alternatives. In order to obtain possibility results for this more general case the present paper proposes to restrict individuals' preference orderings. It is proved that envy-free collective choice rules exist if individual preferences are self-oriented and if, in addition, people attach primary importance to their own private sphere alternatives. These restrictions are quite severe, but they may be justified if one values the absence of envy in rights allocations very highly.