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Interpersonally Comparable Utility

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Listed:
  • Peter Caradonna
  • Zachary Raines

Abstract

We develop a theory of measurement scales for utility functions, based on a generalization of the notion of numeraire commodity. Every sufficiently well-behaved utility is denominated in some scale of this form, and conversely, the choice of a compatible scale unit uniquely identifies utilities up to an additive constant. We define a profile of utilities to be interpersonally comparable precisely when they are denominated in a common measurement unit. We study when profiles of comparable utilities exist, as well as how a planner ought to aggregate them, and provide applications to social choice and welfare economics.

Suggested Citation

  • Peter Caradonna & Zachary Raines, 2026. "Interpersonally Comparable Utility," Papers 2608.25043, arXiv.org.
    • Handle: RePEc:arx:papers:2608.25043
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    References listed on IDEAS

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    2. Claude D'Aspremont & Louis Gevers, 1977. "Equity and the Informational Basis of Collective Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(2), pages 199-209.
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
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