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Generalized Utilitarianism and Harsanyi’s Partial Observer Theorem

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Author Info
Simon Grant (Dept. of Economics, Rice University)
Atsushi Kajii (Institute of Economic Research, Kyoto University)
Ben Polak () (Dept. of Economics and School of Management, Yale University)
Zvi Safra (Tel Aviv University and College of Management)

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Abstract

We 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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Paper provided by Cowles Foundation, Yale University in its series Cowles Foundation Discussion Papers with number 1578.

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Length: 59 pages
Date of creation: Sep 2006
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Handle: RePEc:cwl:cwldpp:1578

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Related research
Keywords: Generalized utilitarianism Impartial observer Social welfare function Fairness Ex ante egalitarianism

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Find related papers by JEL classification:
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

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  1. Grant, Simon & Kajii, Atsushi & Polak, Ben, 1998. "Intrinsic Preference for Information," Journal of Economic Theory, Elsevier, vol. 83(2), pages 233-259, December. [Downloadable!] (restricted)
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  2. Sen, Amartya K, 1977. "On Weights and Measures: Informational Constraints in Social Welfare Analysis," Econometrica, Econometric Society, vol. 45(7), pages 1539-72, October. [Downloadable!] (restricted)
  3. Karni, Edi & Safra, Zvi, 2000. "An extension of a theorem of von Neumann and Morgenstern with an application to social choice theory," Journal of Mathematical Economics, Elsevier, vol. 34(3), pages 315-327, November. [Downloadable!] (restricted)
  4. John C. Harsanyi, 1953. "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking," Journal of Political Economy, University of Chicago Press, vol. 61, pages 434. [Downloadable!] (restricted)
  5. Hammond, Peter J, 1981. "Ex-ante and Ex-post Welfare Optimality under Uncertainty," Economica, London School of Economics and Political Science, vol. 48(191), pages 235-50, August. [Downloadable!] (restricted)
  6. Weymark, J.A., 1990. "A Reconsideration Of The Harsanyi-Sen Debate On Utilitarianism," UBC Departmental Archives 90-03, UBC Department of Economics.
  7. Roberts, Kevin W S, 1980. "Possibility Theorems with Interpersonally Comparable Welfare Levels," Review of Economic Studies, Blackwell Publishing, vol. 47(2), pages 409-20, January. [Downloadable!] (restricted)
  8. Kreps, David M. & Porteus, Evan L., 1979. "Temporal von neumann-morgenstern and induced preferences," Journal of Economic Theory, Elsevier, vol. 20(1), pages 81-109, February. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Broome, John, 1984. "Uncertainty and Fairness," Economic Journal, Royal Economic Society, vol. 94(375), pages 624-32, September. [Downloadable!] (restricted)
  11. Edi Karni & Zvi Safra, 2002. "Individual Sense of Justice: A Utility Representation," Econometrica, Econometric Society, vol. 70(1), pages 263-284, January. [Downloadable!] (restricted)
  12. Edi Karni, 1996. "Social welfare functions and fairness," Social Choice and Welfare, Springer, vol. 13(4), pages 487-496.
  13. Mongin, P., 1999. "The Impartial Observer Theorem of Social Ethics," Papers 99-33, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
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  14. Myerson, Roger B, 1981. "Utilitarianism, Egalitarianism, and the Timing Effect in Social Choice Problems," Econometrica, Econometric Society, vol. 49(4), pages 883-97, June. [Downloadable!] (restricted)
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