Social choice with approximate interpersonal comparison of welfare gains
Suppose it is possible to make approximate interpersonal comparisons of welfare gains and losses. Thus, if w, x, y, and z are personal psychophysical states (each encoding all ethically relevant information about the physical and mental state of a person), then it sometimes possible to say, ``The welfare gain of the state change w --> x is greater than the welfare gain of the state change y --> z.'' We can represent this by the formula ``(w --> x)> (y --> z)'', where `>' 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. The `minimal' SDP is the natural extension of the Suppes-Sen preorder to this setting; we show that it is a subrelation of every other SDP. The `approximate utilitarian' SDP ranks social state changes by comparing the sum total utility gain they induce, with respect to all `utility functions' compatible with `>'. The `net gain' preorder ranks social state changes by comparing the aggregate welfare gain they induce upon various subpopulations. We show that, under certain conditions, all three of these preorders coincide.
|Date of creation:||14 Jul 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arrow, Kenneth J, 1977. "Extended Sympathy and the Possibility of Social Choice," American Economic Review, American Economic Association, vol. 67(1), pages 219-25, February.
- Sen, Amartya K, 1972. "Interpersonal Comparison and Partial Comparability: A Correction," Econometrica, Econometric Society, vol. 40(5), pages 959, September.
- Pivato, Marcus, 2011.
"Additive representation of separable preferences over infinite products,"
28262, University Library of Munich, Germany.
- Marcus Pivato, 2014. "Additive representation of separable preferences over infinite products," Theory and Decision, Springer, vol. 77(1), pages 31-83, June.
- Manel Baucells & Lloyd S. Shapley, 2000.
Econometric Society World Congress 2000 Contributed Papers
0078, Econometric Society.
- 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.
- Kaushik Basu & Tapan Mitra, 2003.
"Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian,"
Econometric Society, vol. 71(5), pages 1557-1563, 09.
- Basu, Kaushik & Mitra, Tapan, 2003. "Aggregating Infinite Utility Streams with Inter-generational Equity: The Impossibility of Being Paretian," Working Papers 03-03, Cornell University, Center for Analytic Economics.
- FLEURBAEY, Marc & MICHEL, Philippe, 1997.
"Intertemporal equity and the extension of the Ramsey criterion,"
CORE Discussion Papers
1997004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fleurbaey, Marc & Michel, Philippe, 2003. "Intertemporal equity and the extension of the Ramsey criterion," Journal of Mathematical Economics, Elsevier, vol. 39(7), pages 777-802, September.
- M. Fleurbaey & P. Michel, 1997. "Intertemporal equity and the extension of the Ramsey criterion," THEMA Working Papers 97-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Pivato, Marcus, 2010. "Aggregation of incomplete ordinal preferences with approximate interpersonal comparisons," MPRA Paper 25271, University Library of Munich, Germany.
- Charles M. Harvey & Lars Peter Østerdal, 2007. "Cardinal Scales for Public Health Evaluation," Discussion Papers 07-01, University of Copenhagen. Department of Economics.
- Pivato, Marcus, 2010. "Approximate interpersonal comparisons of well-being," MPRA Paper 25224, University Library of Munich, Germany.
- Pivato, Marcus, 2010. "Risky social choice with approximate interpersonal comparisons of well-being," MPRA Paper 25222, University Library of Munich, Germany.
- Gerard Debreu, 1957. "Stochastic Choice and Cardinal Utility," Cowles Foundation Discussion Papers 39, Cowles Foundation for Research in Economics, Yale University.
- Sen, Amartya, 1970. "Interpersonal Aggregation and Partial Comparability," Econometrica, Econometric Society, vol. 38(3), pages 393-409, May.
- Patrick Suppes & Muriel Winet, 1955. "An Axiomatization of Utility Based on the Notion of Utility Differences," Management Science, INFORMS, vol. 1(3-4), pages 259-270, 04-07.
- Basu, Kaushik & Mitra, Tapan, 2005. "On the Existence of Paretian Social Welfare Relations for Infinite Utility Streams with Extended Anonymity," Working Papers 05-06, Cornell University, Center for Analytic Economics.
- Blackorby, Charles, 1975. "Degrees of Cardinality and Aggregate Partial Orderings," Econometrica, Econometric Society, vol. 43(5-6), pages 845-52, Sept.-Nov.
- Fine, Ben, 1975. "A Note on "Interpersonal Aggregation and Partial Comparability"," Econometrica, Econometric Society, vol. 43(1), pages 169-72, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32252. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.