Generalized Utilitarianism and Harsanyi's Partial Observer Theorem
AbstractWe provide an axiomatization of generalized utilitarian social welfare functions in the context of Harsanyi's impartial observer theorem. To do this, we reformulate Harsanyi's problem such that lotteries over identity (accidents of birth) and lotteries over outcomes (life chances) are independent. We show how to accommodate (first) Diamond's critique concerning fairness and (second) Pattanaik's critique concerning differing attitudes toward risk. In each case, we show what separates them from Harsanyi by showing what extra axioms return us to Harsanyi. Thus we provide two new axiomatizations of Harsanyi's utilitarianism.
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Date of creation: 22 Sep 2006
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- Simon Grant & Atsushi Kajii & Ben Polak & Zvi Safra, 2010. "Generalized Utilitarianism and Harsanyi's Impartial Observer Theorem," Econometrica, Econometric Society, vol. 78(6), pages 1939-1971, November.
- Simon Grant & Atsushi Kajii & Ben Polak & Zvi Safra, 2006. "Generalized Utilitarianism and Harsanyi’s Partial Observer Theorem," Cowles Foundation Discussion Papers 1578, Cowles Foundation for Research in Economics, Yale University.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-30 (All new papers)
- NEP-CDM-2006-09-30 (Collective Decision-Making)
- NEP-HPE-2006-09-30 (History & Philosophy of Economics)
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