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Systems of Benevolent Utility Functions

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Author Info
Ted Bergstrom (University of California, Santa Barbara)

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Abstract

Suppose that 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.

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File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1115&context=ucsbecon
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Publisher Info
Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number 1999B.

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Date of creation: 01 Jan 1999
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Handle: RePEc:cdl:ucsbec:1999b

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Related research
Keywords: benevolence; interdependent utility functions; dominant diagonal matrices; denumerable matrices;

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  1. Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics. [Downloadable!]
    Other versions:
  2. 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!]
  3. Theodore C. Bergstrom, 2006. "Benefit-Cost in a Benevolent Society," American Economic Review, American Economic Association, vol. 96(1), pages 339-351, March. [Downloadable!]
    Other versions:
  4. Eduardo Ley, 1996. "Optimal Provision of Public Goods with Altruistic Individuals," Public Economics 9607001, EconWPA, revised 06 Oct 2001. [Downloadable!]
    Other versions:
  5. 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:
  6. Vicki Knoblauch, 2001. "Is Altruism Feasible? Interdependent Preferences Provide the Answer," Working papers 2001-04, University of Connecticut, Department of Economics. [Downloadable!]
  7. 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)
  8. Johansson-Stenman, Olof, 2004. "Global environmental problems, efficiency and limited altruism," Working Papers in Economics 139, Göteborg University, Department of Economics. [Downloadable!]
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  9. Akram Temimi, 2001. "Does Altruism Mitigate Free-riding and Welfare Loss?," Economics Bulletin, Economics Bulletin, vol. 8, pages 1-8. [Downloadable!]
  10. 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)
  11. 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!]
  12. 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:
  13. 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!]
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