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Will of the living dead — The case for a backward-looking welfare function

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  • Ahlvik, Lassi

Abstract

Many people have preferences over choices taking place after their lifetime. I show that a backward-looking welfare function, keeping preferences of the dead alive, is Pareto-improving and can be sustained as a subgame-perfect equilibrium of the intergenerational game.

Suggested Citation

  • Ahlvik, Lassi, 2022. "Will of the living dead — The case for a backward-looking welfare function," Economics Letters, Elsevier, vol. 214(C).
    • Handle: RePEc:eee:ecolet:v:214:y:2022:i:c:s0165176522000817
    DOI: 10.1016/j.econlet.2022.110418
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    References listed on IDEAS

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    1. Simone Galperti & Bruno Strulovici, 2017. "A Theory of Intergenerational Altruism," Econometrica, Econometric Society, vol. 85, pages 1175-1218, July.
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    3. Nesje, Frikk, 2020. "Cross-dynastic Intergenerational Altruism," Working Papers 0678, University of Heidelberg, Department of Economics.
    4. B. Douglas Bernheim, 1989. "Intergenerational Altruism, Dynastic Equilibria and Social Welfare," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 119-128.
    5. Stephen Fels & Richard Zeckhauser, 2008. "Perfect and total altruism across the generations," Journal of Risk and Uncertainty, Springer, vol. 37(2), pages 187-197, December.
    6. Erlend Berg, 2018. "Funeral Insurance: An Inter-Generational Commitment Device?," Journal of African Economies, Centre for the Study of African Economies, vol. 27(3), pages 321-346.
    7. Theodore C. Bergstrom, 1999. "Systems of Benevolent Utility Functions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 71-100, January.
    8. Hori, Hajime & Kanaya, Sadao, 1989. "Utility functionals with nonpaternalistic intergenerational altruism," Journal of Economic Theory, Elsevier, vol. 49(2), pages 241-265, December.
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    More about this item

    Keywords

    Backward-looking welfare function; Repeated game; Intertemporal social choice;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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