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The Relevance of Utilitarianism

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Listed:
  • Marc Fleurbaey

    (Princeton University)

  • Philippe Monginy

    (CNRS & HEC Paris)

Abstract

Harsanyi invested his Aggregation Theorem and Impartial Observer Theorem with deep utilitarian sense, but Sen redescribed them as "representation theorems" with little ethical import. This negative view has gained wide acquiescence in economics. Against it, we support the utilitarian interpretation by a novel argument relative to the Aggregation Theorem. We suppose that a utilitarian observer evaluates non-risky alternatives by the sum of individual utilities and investigate his von Neumann-Morgenstern (VNM) preference on risky alternatives. Adding some technical assumptions to Harsanyi's, we conclude that (i) this observer would use the utility sum as a VNM utility function, and crucially, (ii) any social observer would evaluate both risky and non-risky alternatives in terms of a weighted utility sum. Hence, pace Sen, VNM theory can give some interesting support to utilitarianism. The argument is conveyed by means of three theorems that encapsulate Harsanyi's original one as a particular step.

Suggested Citation

  • Marc Fleurbaey & Philippe Monginy, 2011. "The Relevance of Utilitarianism," Working Papers 1369, Princeton University, Department of Economics, Econometric Research Program..
    • Handle: RePEc:pri:metric:wp027_2011_fleurbaey_mongin.pdf
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    References listed on IDEAS

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    1. Blackorby, Charles & Donaldson, David & Weymark, John A., 1999. "Harsanyi's social aggregation theorem for state-contingent alternatives1," Journal of Mathematical Economics, Elsevier, vol. 32(3), pages 365-387, November.
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    4. 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 765-765.
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    6. Grandmont, Jean-Michel, 1972. "Continuity properties of a von Neumann-Morgenstern utility," Journal of Economic Theory, Elsevier, vol. 4(1), pages 45-57, February.
    7. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63, pages 309-309.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Utilitarianism; Aggregation Theorem; Impartial Observer Theo- rem; cardinal utility; VNM utility; Harsanyi; Sen;
    All these keywords.

    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
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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