Markets, Morals, and the Welfare State

It seems that our attempts at engaging in cooperative behavior are shaped by our desire to satisfy two
fundamental concerns. One is that as much collective benefit is produced as possible (a norm of efficiency).
The other is that the benefits produced are distributed as fairly as possible (a norm of equality). It seems,
however, that for various reasons – most especially certain features of the human condition – satisfying both
concerns simultaneously is extremely difficult. From the perspective of economic cooperation, which do you
think should take priority – efficiency or fairness – and why?

Sample Solution