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Ordering, equity and non-expected utility theory

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Author Info
SAVAGLIO, Ernesto

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Abstract

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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Publisher 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: 01 Feb 2002
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Handle: RePEc:cor:louvco:2002007

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

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare

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This page was last updated on 2009-12-16.


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