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Individual Sense of Justice: A Utility Representation

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Author Info
Edi Karni () (Dept. of Economics, Johns Hopkins University, U.S.A.)
Zvi Safra () (Faculty of Management, Tel Aviv University, Israel)
Abstract

We present an axiomatic model depicting the choice behavior of a self-interest seeking moral individual over random allocation procedures. Individual preferences are decomposed into a self-interest component and a component representing the individual's moral value judgment. Each component has a distinct utility representation, and the preference relation depicting the choice behavior is representable by a real-valued function defined on the components utilities. The utility representing the self-interest component is linear and the utility representing the individual's moral value judgment is quasi-concave. The addition of a hexagon condition implies that the utility representing the individual's preference is additively separable in the components utilities. Copyright The Econometric Society 2002.

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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 70 (2002)
Issue (Month): 1 (January)
Pages: 263-284
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Handle: RePEc:ecm:emetrp:v:70:y:2002:i:1:p:263-284

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