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Assessing Risky Social Situations

Listed author(s):
  • Marc Fleurbaey

This paper reexamines the welfare economics of risk. It singles out a class of criteria, the "expected equally distributed equivalent," as the unique class that avoids serious drawbacks of existing approaches. Such criteria behave like ex post criteria when the final statistical distribution of well-being is known ex ante and like ex ante criteria when risk generates no inequality. The paper also provides a new result on the tension between inequality aversion and respect of individual ex ante preferences, in the vein of Harsanyi's aggregation theorem. (c) 2010 by The University of Chicago. All rights reserved.

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 118 (2010)
Issue (Month): 4 (08)
Pages: 649-680

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Handle: RePEc:ucp:jpolec:v:118:y:2010:i:4:p:649-680
Contact details of provider: Web page: http://www.journals.uchicago.edu/JPE/

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  1. Fleurbaey, Marc, 2009. "Two variants of Harsanyi's aggregation theorem," Economics Letters, Elsevier, vol. 105(3), pages 300-302, December.
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  4. Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
  5. Thibault Gajdos & Eric Maurin, 2004. "Unequal Uncertainties and Uncertain Inequalities: An Axiomatic Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085940, HAL.
  6. Mongin, P., "undated". "Consistent Bayesian aggregation," CORE Discussion Papers RP 1176, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  8. 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.
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  20. Alon Harel & Zvi Safra & Uzi Segal, 2003. "Ex-Post Egalitarianism," Boston College Working Papers in Economics 563, Boston College Department of Economics.
  21. Broome, John, 2006. "Weighing Lives," OUP Catalogue, Oxford University Press, number 9780199297702, December.
  22. Hammond, Peter J, 1989. "Consistent Plans, Consequentialism, and Expected Utility," Econometrica, Econometric Society, vol. 57(6), pages 1445-1449, November.
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  33. repec:hal:journl:halshs-00085940 is not listed on IDEAS
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