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Separate aggregation of beliefs and values under ambiguity

Author

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  • Xiangyu Qu

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Maximin expected utility model for individual decision making under ambiguity prescribes that the individual posits independently a utility function and a set of probability distributions over events to represent the values and belief, respectively. It assumes that individual evaluates each act on the basis of its minimum expected utility over this class of distributions. In this paper, we attempt to generalize the model to social decision making. It is assumed that the society's belief is formed through a linear aggregation of individual beliefs and society's values through a linear aggregation of individual values. We propose principles which characterize such separate aggregation procedures. We also generalize Choquet expected utility model, which posits a nonadditive measure over events and a utility function to represent belief and values, respectively. We prove that the only aggregation procedures that respect our principles are the separate linear aggregations of beliefs and values

Suggested Citation

  • Xiangyu Qu, 2017. "Separate aggregation of beliefs and values under ambiguity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01437441, HAL.
  • Handle: RePEc:hal:cesptp:hal-01437441
    DOI: 10.1007/s00199-015-0944-1
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2020. "Utilitarianism with and without expected utility," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 77-113.
    2. Takashi Hayashi & Michele Lombardi, 2019. "Fair social decision under uncertainty and belief disagreements," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(4), pages 775-816, June.
    3. Panagiotis Andrikopoulos & Nick Webber, 2019. "Understanding time-inconsistent heterogeneous preferences in economics and finance: a practice theory approach," Annals of Operations Research, Springer, vol. 282(1), pages 3-26, November.
    4. 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.
    5. repec:hal:pseose:hal-01241819 is not listed on IDEAS
    6. Philippe Mongin & Marcus Pivato, 2021. "Rawls’s difference principle and maximin rule of allocation: a new analysis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1499-1525, June.
    7. Fleurbaey, Marc & Zuber, Stéphane, 2017. "Fair management of social risk," Journal of Economic Theory, Elsevier, vol. 169(C), pages 666-706.
    8. Philippe Mongin & Marcus Pivato, 2020. "Social preference under twofold uncertainty," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 633-663, October.
    9. repec:hal:pseose:halshs-01415412 is not listed on IDEAS
    10. Łukasz Balbus, 2020. "On recursive utilities with non-affine aggregator and conditional certainty equivalent," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(2), pages 551-577, September.
    11. Berens, Stefan & Chochua, Lasha, 2017. "The impartial observer under uncertainty," Center for Mathematical Economics Working Papers 576, Center for Mathematical Economics, Bielefeld University.
    12. Kaname Miyagishima, 2022. "Efficiency, equity, and social rationality under uncertainty," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(1), pages 237-255, February.
    13. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2016. "Utilitarianism with and without expected utility," MPRA Paper 72578, University Library of Munich, Germany.
    14. Federica Ceron & Vassili Vergopoulos, 2019. "Aggregation of Bayesian preferences: unanimity vs monotonicity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(3), pages 419-451, March.
    15. Pivato, Marcus, 2022. "Bayesian social aggregation with accumulating evidence," Journal of Economic Theory, Elsevier, vol. 200(C).
    16. Miyagishima, Kaname, 2019. "Fair criteria for social decisions under uncertainty," Journal of Mathematical Economics, Elsevier, vol. 80(C), pages 77-87.

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    More about this item

    Keywords

    Ambiguity; Aggregation of Preferences; Linear aggregation; Choquet expected utility; Maximin expected utility;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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