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Ordering, equity and non-expected utility theory


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  • SAVAGLIO, Ernesto
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    According to Chateauneuf (1996), we compare some inequality criteria. We investigate their properties and characteristics. Then, following the approach that links different levels of deprivation with alternative values of social welfare, we look for a functional that evaluates the well-being of individuals with respect to their relative position in the distribution. After having criticized the approach to evaluate the social welfare using the expected utility theory or the rank dependent one respectively under a descriptive and normative point of view, we introduce an additive subjective utility functional in order to search the behavioral foundations of an equity concerned decision-maker.

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    Bibliographic Info

    Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2002007.

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    Date of creation: 00 Feb 2002
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    Handle: RePEc:cor:louvco:2002007

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    Keywords: inequality; orderings; social welfare; non-expected utility;

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