Assessing Risky Social Situations
AbstractThis paper analyzes social situations in the context of risk. A new argument is proposed in order to defend the ex-post approach against Diamond’s (1967) famous critique of Harsanyi’s (1955) utilitarian theorem. It leads to a characterization of the criterion consisting in computing the expected value of the “equal-equivalent”. Characterizations of the ex-post maximin and leximin criteria, as well as a variant of Harsanyi’s theorem, are also obtained. It is examined how to take account of concerns for ex-ante fairness within this ex-post approach. Related issues are also addressed, such as the rescue problem or preference for catastrophe avoidance.
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Bibliographic InfoPaper provided by Institut d'economie publique (IDEP), Marseille, France in its series IDEP Working Papers with number 0703.
Length: 40 pages
Date of creation: Jan 2007
Date of revision: Jan 2007
Risk; Social Welfare; ex ante; ex post; Fairness; Harsanyi’s Theorem.;
Other versions of this item:
- 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
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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