Systems of Benevolent Utility Functions

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Systems of Benevolent Utility Functions

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Bergstrom, Theodore C

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Ted Bergstrom

Abstract

This paper studies systems of utility functions in which each person's utility depends on his or her own consumption as well as on the utilities of others. We consider the question of when a system of interdependent utility functions induces unique utility functions over allocations and identifies the class of transformations on interdependent utility functions that are equivalent in the sense of inducing the same preferences over allocations. We show that well-behaved systems of this kind can be studied by means of the theory of dominant-diagonal matrices and that the theory of dominant-diagonal matrices with finitely many elements extends in a satisfactory way to denumerable matrices. The theory of denumerable dominant diagonal matrices allows an elegant analysis of systems of intergenerational benevolence. We also revisit and extend the theory of two-sided altruism as formulated by Kimball and by Hori and Kanaya. Copyright 1999 by Blackwell Publishing Inc.

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Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 1 (1999)
Issue (Month): 1 ()
Pages: 71-100
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Handle: RePEc:bla:jpbect:v:1:y:1999:i:1:p:71-100

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Related research
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Paper
- Ted Bergstrom, 1999. "Systems of Benevolent Utility Functions," University of California at Santa Barbara, Economics Working Paper Series 1999B, Department of Economics, UC Santa Barbara. [Downloadable!]

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Johansson-Stenman, Olof, 2004. "Global environmental problems, efficiency and limited altruism," Working Papers in Economics 139, Göteborg University, Department of Economics. [Downloadable!]
Other versions:
- Johansson-Stenman, Olof, 2005. "Global environmental problems, efficiency and limited altruism," Economics Letters, Elsevier, vol. 86(1), pages 101-106, January. [Downloadable!] (restricted)
Theodore C. Bergstrom, 2004. "Benefit-Cost in a Benevolent Society," Public Economics 0405006, EconWPA. [Downloadable!]
Other versions:
- Ted Bergstrom, 2005. "Benefit-cost in a Benevolent Society," University of California at Santa Barbara, Economics Working Paper Series 2004B, Department of Economics, UC Santa Barbara. [Downloadable!]
- Theodore C. Bergstrom, 2006. "Benefit-Cost in a Benevolent Society," American Economic Review, American Economic Association, vol. 96(1), pages 339-351, March. [Downloadable!]
Akram Temimi, 2001. "Does Altruism Mitigate Free-riding and Welfare Loss?," Economics Bulletin, Economics Bulletin, vol. 8, pages 1-8. [Downloadable!]
Pierre-André Chiappori & Murat Iyigun & Yoram Weiss, 2007. "Public Goods, Transferable Utility and Divorce Laws," IZA Discussion Papers 2646, Institute for the Study of Labor (IZA). [Downloadable!]
David Andolfatto, 2000. "A Theory of Inalienable Property Rights," Cahiers de recherche CREFE / CREFE Working Papers 110, CREFE, Université du Québec à Montréal. [Downloadable!]
Other versions:
- David Andolfatto, 1999. "A Theory of Inalienable Property Rights," Working Papers 99004, University of Waterloo, Department of Economics, revised Nov 1999.
- David Andolfatto, 2002. "A Theory of Inalienable Property Rights," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 382-393, April. [Downloadable!] (restricted)
Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics. [Downloadable!]
Other versions:
- Theodore C. Bergstrom & Oded Stark, 1994. "How Altruism Can Prevail in an Evolutionary Environment," Microeconomics 9401001, EconWPA. [Downloadable!]
- Bergstrom, T.C. & Stark, O., 1993. "How Altruism Can Prevail in an Evolutionary Environment," Papers 93-01, Michigan - Center for Research on Economic & Social Theory.
- Ted Bergstrom & Oded Stark, 1993. "How Altruism Can Prevail in an Evolutionary Environment," University of California at Santa Barbara, Economics Working Paper Series 1993B, Department of Economics, UC Santa Barbara. [Downloadable!]
- Bergstrom, Theodore C & Stark, Oded, 1993. "How Altruism Can Prevail in an Evolutionary Environment," American Economic Review, American Economic Association, vol. 83(2), pages 149-55, May. [Downloadable!] (restricted)
Joel Sobel, 2009. "Generous actors, selfish actions: markets with other-regarding preferences," International Review of Economics, Springer, vol. 56(1), pages 3-16, March. [Downloadable!] (restricted)
Joaquín Andaluz & Miriam Marcén & José Alberto Molina, 2007. "Income Transfers, Welfare and Family Decisions," IZA Discussion Papers 2804, Institute for the Study of Labor (IZA). [Downloadable!]
Stanley Reiter, 1998. "Interdependent Preferences and Groups of Agents," Discussion Papers 1217, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
Other versions:
- Reiter, Stanley, 2001. " Interdependent Preferences and Groups of Agents," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(1), pages 27-67. [Downloadable!] (restricted)
Johansson-Stenman, Olof, 2006. "Cost Benefit Rules when Nature Counts," Working Papers in Economics 198, Göteborg University, Department of Economics, revised 09 May 2006. [Downloadable!]
Eduardo Ley, 1996. "Optimal Provision of Public Goods with Altruistic Individuals," Public Economics 9607001, EconWPA, revised 06 Oct 2001. [Downloadable!]
Other versions:
- Ley, Eduardo, 1997. "Optimal provision of public goods with altruistic individuals," Economics Letters, Elsevier, vol. 54(1), pages 23-27, January. [Downloadable!] (restricted)
Hajime Hori, 2009. "Nonpaternalistic altruism and functional interdependence of social preferences," Social Choice and Welfare, Springer, vol. 32(1), pages 59-77, January. [Downloadable!] (restricted)
Vicki Knoblauch, 2001. "Is Altruism Feasible? Interdependent Preferences Provide the Answer," Working papers 2001-04, University of Connecticut, Department of Economics. [Downloadable!]

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