Journal of Economic Literature (JEL) Code(s)
D50, D59, D6, P2
Socialism is conceptualized as a society in which individuals cooperate, distinguished from capitalism, characterized as involving ubiquitous economic competition. Here, I embed a formal model of cooperation in an Arrow-Debreu model, using the Kantian optimization protocol, and deﬁne a Walras-Kant equilibrium, in which ﬁrms maximize proﬁts, consumers choose demands for commodities in the usual utilitymaximizing fashion, and the state rents capital to ﬁrms. The labor-supply decision of workers, however, is arrived at using the cooperative protocol. Incomes are redistributed through a flat income tax. Walras-Kant equilibria, with any desired degree of income equality exist, are decentralizable, and are Pareto eﬀicient.
Roemer, John E., "A Design for Market Socialism" (2017). Cowles Foundation Discussion Papers. 194.