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Social choice with approximate interpersonal comparison of welfare gains

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  • Marcus Pivato

Abstract

Suppose it is possible to make approximate interpersonal comparisons of welfare gains and losses. Thus, if $$w$$ w , $$x$$ x , $$y$$ y and $$z$$ z are personal states (each encoding all factors which influence the well-being of an individual), then it is sometimes possible to say “The welfare gain of the state change $$w\leadsto x$$ w ⇝ x is greater than the welfare gain of the state change $$y\leadsto z$$ y ⇝ z ”. We can represent this by the formula “ $$(w\leadsto x)\succeq (y\leadsto z)$$ ( w ⇝ x ) ⪰ ( y ⇝ z ) ”, where $$(\succeq )$$ ( ⪰ ) is a difference preorder: an incomplete preorder on the space of all possible personal state changes. A social state change is a bundle of personal state changes. A social difference preorder (SDP) is an incomplete preorder on the space of social state changes, which satisfies Pareto and Anonymity axioms. We characterize a family of SDPs which are roughly utilitarian in nature. We also apply the model to redistributive taxation. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Marcus Pivato, 2015. "Social choice with approximate interpersonal comparison of welfare gains," Theory and Decision, Springer, vol. 79(2), pages 181-216, September.
    • Handle: RePEc:kap:theord:v:79:y:2015:i:2:p:181-216
    DOI: 10.1007/s11238-014-9458-8
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    1. Pivato, Marcus, 2010. "Risky social choice with approximate interpersonal comparisons of well-being," MPRA Paper 25222, University Library of Munich, Germany.
    2. Pivato, Marcus, 2013. "Multiutility representations for incomplete difference preorders," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 196-220.
    3. Marcus Pivato, 2014. "Additive representation of separable preferences over infinite products," Theory and Decision, Springer, vol. 77(1), pages 31-83, June.
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    19. Marcus Pivato, 2013. "Risky social choice with incomplete or noisy interpersonal comparisons of well-being," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 123-139, January.
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    22. Marcus Pivato, 2015. "Social choice with approximate interpersonal comparison of welfare gains," Theory and Decision, Springer, vol. 79(2), pages 181-216, September.
    23. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63(4), pages 309-309.
    24. Pivato, Marcus, 2010. "Aggregation of incomplete ordinal preferences with approximate interpersonal comparisons," MPRA Paper 25271, University Library of Munich, Germany.
    25. d'Aspremont, Claude & Gevers, Louis, 2002. "Social welfare functionals and interpersonal comparability," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 10, pages 459-541, Elsevier.
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    1. Marcus Pivato, 2013. "Risky social choice with incomplete or noisy interpersonal comparisons of well-being," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 123-139, January.
    2. Pivato, Marcus, 2013. "Social welfare with incomplete ordinal interpersonal comparisons," Journal of Mathematical Economics, Elsevier, vol. 49(5), pages 405-417.
    3. Pivato, Marcus, 2013. "Multiutility representations for incomplete difference preorders," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 196-220.
    4. Sakamoto, Norihito, 2018. "Equity Criteria Based on the Dominance Principle and Individual Preferences: Refinements of the Consensus Approach," RCNE Discussion Paper Series 5, Research Center for Normative Economics, Institute of Economic Research, Hitotsubashi University.
    5. Marcus Pivato, 2015. "Social choice with approximate interpersonal comparison of welfare gains," Theory and Decision, Springer, vol. 79(2), pages 181-216, September.

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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