Advanced Search
MyIDEAS: Login to save this article or follow this journal

Multiperson utility

Contents:

Author Info

  • Baucells, Manel
  • Shapley, Lloyd S.

Abstract

We approach the problem of preference aggregation by endowing both individuals and coalitions with partially-ordered or incomplete preferences for decision under risk. Restricting attention to the case of complete individual preferences, and assuming complete preferences for some pairs of agents (interpersonal comparisons of utility units), we discover that the Extended Pareto Rule (if two disjoint coalitions A and B prefer x to y, then so does the coalition A[union or logical sum]B) imposes a "no arbitrage" condition in the terms of utility comparison between agents. Furthermore, if all the individuals and pairs have complete preferences and certain non-degeneracy conditions are met, then we witness the emergence of a complete preference ordering for coalitions of all sizes. The corresponding utilities are a weighted sum of individual utilities, with the n-1 independent weights obtained from the preferences of n-1 pairs forming a spanning tree in the group.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6WFW-4PJ6GK7-1/1/82fd0f9caa9045fa22246ff50d8e2ee0
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 62 (2008)
Issue (Month): 2 (March)
Pages: 329-347

as in new window
Handle: RePEc:eee:gamebe:v:62:y:2008:i:2:p:329-347

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords:

Other versions of this item:

References

References listed on IDEAS
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.:
as in new window
  1. Sobel, Joel, 2001. "Manipulation of Preferences and Relative Utilitarianism," Games and Economic Behavior, Elsevier, vol. 37(1), pages 196-215, October.
  2. Luce, R Duncan & Krantz, David H, 1971. "Conditional Expected Utility," Econometrica, Econometric Society, vol. 39(2), pages 253-71, March.
  3. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63, pages 309.
  4. Fishburn, Peter C, 1973. "A Mixture-Set Axiomatization of Conditional Subjective Expected Utility," Econometrica, Econometric Society, vol. 41(1), pages 1-25, January.
  5. Rigotti, Luca & Shannon, Chris, 2001. "Uncertainty and Risk in Financial Markets," Department of Economics, Working Paper Series qt6m42r5rr, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  6. DHILLON, Amrita & MERTENS, Jean-François, 1993. "Relative Utilitarianism," CORE Discussion Papers 1993048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Kalai, Ehud & Schmeidler, David, 1977. "Aggregation Procedure for Cardinal Preferences: A Formulation and Proof of Samuelson's Impossibility Conjecture," Econometrica, Econometric Society, vol. 45(6), pages 1431-38, September.
  8. SCHMEIDLER, David, . "Competitive equilibria in markets with a continuum of traders and incomplete preferences," CORE Discussion Papers RP -62, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Sen, Amartya, 1970. "Interpersonal Aggregation and Partial Comparability," Econometrica, Econometric Society, vol. 38(3), pages 393-409, May.
  10. James S. Dyer & Rakesh K. Sarin, 1979. "Group Preference Aggregation Rules Based on Strength of Preference," Management Science, INFORMS, vol. 25(9), pages 822-832, September.
  11. Lloyd S. Shapley & Manel Baucells, 1998. "Multiperson Utility," UCLA Economics Working Papers 779, UCLA Department of Economics.
  12. Edi Karni, 2003. "Impartiality and interpersonal comparisons of variations in well-being," Social Choice and Welfare, Springer, vol. 21(1), pages 95-111, 08.
  13. Manel Baucells & Rakesh K. Sarin, 2003. "Group Decisions with Multiple Criteria," Management Science, INFORMS, vol. 49(8), pages 1105-1118, August.
  14. DeMeyer, Frank & Plott, Charles R, 1971. "A Welfare Function Using 'Relative Intensity' of Preference," The Quarterly Journal of Economics, MIT Press, vol. 85(1), pages 179-86, February.
  15. Sen, Amartya K, 1977. "On Weights and Measures: Informational Constraints in Social Welfare Analysis," Econometrica, Econometric Society, vol. 45(7), pages 1539-72, October.
  16. Costis Skiadas, 1997. "Conditioning and Aggregation of Preferences," Econometrica, Econometric Society, vol. 65(2), pages 347-368, March.
  17. Dubra, Juan & Maccheroni, Fabio & Ok, Efe A., 2004. "Expected utility theory without the completeness axiom," Journal of Economic Theory, Elsevier, vol. 115(1), pages 118-133, March.
  18. Saposnik, Rubin, 1975. "Social Choice with Continuous Expression of Individual Preferences," Econometrica, Econometric Society, vol. 43(4), pages 683-90, July.
  19. Amrita Dhillon, 1998. "Extended Pareto rules and relative utilitarianism," Social Choice and Welfare, Springer, vol. 15(4), pages 521-542.
  20. Truman F. Bewley, 1986. "Knightian Decision Theory: Part 1," Cowles Foundation Discussion Papers 807, Cowles Foundation for Research in Economics, Yale University.
  21. Peter A. Diamond, 1967. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparison of Utility: Comment," Journal of Political Economy, University of Chicago Press, vol. 75, pages 765.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:62:y:2008:i:2:p:329-347. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.