IDEAS home Printed from https://ideas.repec.org/p/lue/wpaper/311.html
   My bibliography  Save this paper

Value pluralism, trade-offs and efficiencies

Author

Listed:
  • Nikolai Hoberg

    (Leuphana University Lueneburg, Germany)

  • Stefan Baumgärtner

    () (University of Freiburg, Germany)

Abstract

Political decision-makers face increasing demands to justify their actions with respect to multiple normative objectives or values. Here, we provide a general philosophical-economic clarification of the discussion of value pluralism, value-efficiency (i.e. efficiency with respect to values) and feasible relationships between values. We derive what relationships between values can exist in states of affairs that are valueefficient. In particular, we show that in a value-efficient state of affairs there is a tradeoff between at least two values, and that a win-win relationship between values is no indication of value-inefficiency when there are three or more values. Further, we connect these relationships to the opportunity costs of attaining a value to a higher degree. Lastly, we contrast Pareto-efficiency with value-efficiency and show that there can be a win-win relationship between values in a Pareto-efficient state of affairs. Our analysis provides insights that help decision-making in situations where there are multiple values at stake.

Suggested Citation

  • Nikolai Hoberg & Stefan Baumgärtner, 2014. "Value pluralism, trade-offs and efficiencies," Working Paper Series in Economics 311, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:311
    as

    Download full text from publisher

    File URL: https://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/lue/pdf/wp_311_Upload.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, April.
    2. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Blank, Rebecca M., 2002. "Can equity and efficiency complement each other?," Labour Economics, Elsevier, vol. 9(4), pages 451-468, September.
    5. Louis Putterman & John E. Roemer & Joaquim Silvestre, 1998. "Does Egalitarianism Have a Future?," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 861-902, June.
    6. Amartya Sen, 1997. "Maximization and the Act of Choice," Econometrica, Econometric Society, vol. 65(4), pages 745-780, July.
    7. Houy, Nicolas & Tadenuma, Koichi, 2009. "Lexicographic compositions of multiple criteria for decision making," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1770-1782, July.
    8. Marc Fleurbaey, 2007. "Social choice and the indexing dilemma," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(4), pages 633-648, December.
    9. Marc Fleurbaey & Kotaro Suzumura & Koichi Tadenuma, 2005. "The informational basis of the theory of fair allocation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(2), pages 311-341, April.
    10. Sen, Amartya K, 1979. "Personal Utilities and Public Judgements: Or What's Wrong with Welfare Economics?," Economic Journal, Royal Economic Society, vol. 89(355), pages 537-558, September.
    11. Hougaard, Jens Leth & Tvede, Mich, 2001. "The existence of maximal elements: generalized lexicographic relations," Journal of Mathematical Economics, Elsevier, vol. 36(2), pages 111-115, November.
    12. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
    13. Sen, Amartya Kumar, 1970. "The Impossibility of a Paretian Liberal," Scholarly Articles 3612779, Harvard University Department of Economics.
    14. Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-157, Jan.-Feb..
    15. Marc Fleurbaey & Bertil Tungodden & Howard F. Chang, 2003. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle: A Comment," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1382-1386, December.
    16. Dasgupta, Partha, 2005. "What Do Economists Analyze And Why: Values Or Facts?," Economics and Philosophy, Cambridge University Press, vol. 21(02), pages 221-278, October.
    17. Stefanie Glotzbach & Stefan Baumgartner, 2012. "The Relationship between Intragenerational and Intergenerational Ecological Justice," Environmental Values, White Horse Press, vol. 21(3), pages 331-355, August.
    18. Cowen, Tyler, 2007. "The Importance Of Defining The Feasible Set," Economics and Philosophy, Cambridge University Press, vol. 23(01), pages 1-14, March.
    19. Amartya Sen, 1999. "The Possibility of Social Choice," American Economic Review, American Economic Association, vol. 89(3), pages 349-378, June.
    20. Pattanaik, Prasanta K. & Xu, Yongsheng, 2012. "On Dominance And Context-Dependence In Decisions Involving Multiple Attributes," Economics and Philosophy, Cambridge University Press, vol. 28(02), pages 117-132, July.
    21. Hausman, Daniel M & McPherson, Michael S, 1993. "Taking Ethics Seriously: Economics and Contemporary Moral Philosophy," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 671-731, June.
    22. Louis Kaplow & Steven Shavell, 2001. "Any Non-welfarist Method of Policy Assessment Violates the Pareto Principle," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 281-286, April.
    23. World Bank, 2012. "Inclusive Green Growth : The Pathway to Sustainable Development," World Bank Publications, The World Bank, number 6058, June.
    24. Bergstrom, Theodore C., 1975. "Maximal elements of acyclic relations on compact sets," Journal of Economic Theory, Elsevier, vol. 10(3), pages 403-404, June.
    25. Walker, Mark, 1977. "On the existence of maximal elements," Journal of Economic Theory, Elsevier, vol. 16(2), pages 470-474, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    efficiency; value pluralism; value trade-offs; welfarism;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H00 - Public Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lue:wpaper:311. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner). General contact details of provider: https://leuphana.de/institute/ivwl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.