Suppes-Sen dominance, generalised Lorenz dominance and the welfare economics of competitive equilibrium: Some examples

This paper studies two quasi-orderings in the context of three simple equilibrium models; a general equilibrium model with identical consumers, a model of an artisan economy, and an education model. The first quasi-ordering is induced by Suppes-Sen dominance (or first-degree stochastic dominance) amongst utility vectors of individuals, and the second evolves from generalised Lorenz dominance (second-degree stochastic dominance) similarly applied. It is shown how Pareto-efficient competitive equilibria may or may not be Suppes-Sen optima/generalised Lorenz optima, and it is suggested that this information is valuable for welfare analysis.