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Robust Social Decisions

Author

Listed:
  • Eric Danan
  • Thibault Gajdos
  • Brian Hill
  • Jean-Marc Tallon

Abstract

We propose and operationalize normative principles to guide social decisions when individuals potentially have imprecise and heterogeneous beliefs, in addition to conflicting tastes or interests. To do so, we adapt the standard Pareto principle to those preference comparisons that are robust to belief imprecision and characterize social preferences that respect this robust principle. We also characterize a suitable restriction of this principle. The former principle provides stronger guidance when it can be satisfied; when it cannot, the latter always provides minimal guidance.

Suggested Citation

  • Eric Danan & Thibault Gajdos & Brian Hill & Jean-Marc Tallon, 2016. "Robust Social Decisions," American Economic Review, American Economic Association, vol. 106(9), pages 2407-2425, September.
  • Handle: RePEc:aea:aecrev:v:106:y:2016:i:9:p:2407-25
    Note: DOI: 10.1257/aer.20150678
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:joecth:v:65:y:2018:i:2:d:10.1007_s00199-016-1022-z is not listed on IDEAS
    2. Mongin, Philippe & Pivato, Marcus, 2016. "Social Preference Under Twofold Uncertainty," HEC Research Papers Series 1154, HEC Paris.
    3. repec:eee:jetheo:v:169:y:2017:i:c:p:666-706 is not listed on IDEAS
    4. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2016. "Utilitarianism with and without expected utility," MPRA Paper 72578, University Library of Munich, Germany.
    5. Zuber, Stéphane, 2016. "Harsanyi’s theorem without the sure-thing principle: On the consistent aggregation of Monotonic Bernoullian and Archimedean preferences," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 78-83.
    6. Fleurbaey, Marc & Zuber, Stéphane, 2017. "Fair management of social risk," Journal of Economic Theory, Elsevier, vol. 169(C), pages 666-706.
    7. Wang, Weijia, 2019. "A Pareto Criterion on Systemic Risk," MPRA Paper 93699, University Library of Munich, Germany.
    8. Hill, Brian, 2016. "Incomplete preferences and confidence," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 83-103.
    9. Berens, Stefan & Chochua, Lasha, 2017. "The impartial observer under uncertainty," Center for Mathematical Economics Working Papers 576, Center for Mathematical Economics, Bielefeld University.
    10. Athanasoglou, Stergios & Bosetti, Valentina & Drouet, Laurent, 2017. "A Simple Framework for Climate-Change Policy under Model Uncertainty," MITP: Mitigation, Innovation and Transformation Pathways 254043, Fondazione Eni Enrico Mattei (FEEM).
    11. Gerasimou, Georgios, 2018. "On the indifference relation in Bewley preferences," Economics Letters, Elsevier, vol. 164(C), pages 24-26.
    12. Federica Ceron & Vassili Vergopoulos, 2017. "Aggregation of Bayesian preferences: Unanimity vs Monotonicity," Documents de travail du Centre d'Economie de la Sorbonne 17028, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    13. Federica Ceron & Vassili Vergopoulos, 2017. "Aggregation of Bayesian preferences: Unanimity vs Monotonicity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01539444, HAL.
    14. repec:spr:sochwe:v:52:y:2019:i:3:d:10.1007_s00355-018-1158-9 is not listed on IDEAS
    15. repec:eee:mateco:v:80:y:2019:i:c:p:77-87 is not listed on IDEAS

    More about this item

    JEL classification:

    • 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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