Approximate implementation of Relative Utilitarianism via Groves-Clarke pivotal voting with virtual money
`Relative Utilitarianism' (RU) is a version of classical utilitarianism, where each person's utility function is rescaled to range from zero to one. As a voting system, RU is vulnerable to preference exaggeration by strategic voters. The Groves-Clarke Pivotal Mechanism elicits truthful revelation of preferences by requiring each voter to `bid' a sum of real money to cast a pivotal vote. However, this neglects wealth effects and gives disproportionate power to rich voters. We propose a variant of the Pivotal Mechanism using fixed allotments of notional `voting money'; this `Voting Money Pivotal Mechanism' (VMPM) is politically egalitarian and immune to wealth effects. In the large-population limit, the only admissible (i.e. weakly undominated) voting strategies in the VMPM are approximately truthful revelations of preferences; thus the VMPM yields an arbitrarily close approximation of RU.
|Date of creation:||30 Oct 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
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.:
- Yew-Kwang Ng, 1975. "Bentham or Bergson? Finite Sensibility, Utility Functions and Social Welfare Functions," Review of Economic Studies, Oxford University Press, vol. 42(4), pages 545-569.
- Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, 1.
- Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
- Amrita Dhillon, 1998. "Extended Pareto rules and relative utilitarianism," Social Choice and Welfare, Springer, vol. 15(4), pages 521-542.
- I. Good, 1977. "Justice in voting by demand revelation," Public Choice, Springer, vol. 29(2), pages 65-70, March.
- DHILLON, Amrita & MERTENS, Jean-FranÃ§ois, .
CORE Discussion Papers RP
1398, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Donald John Roberts & Andrew Postlewaite, 1973. "The Incentives for Price-Taking Behavior In Large Economies," Discussion Papers 44, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Shmuel Nitzan & Jacob Paroush & Shlomo Lampert, 1980. "Preference expression and misrepresentation in points voting schemes," Public Choice, Springer, vol. 35(4), pages 421-436, January.
- Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
- Shmuel Nitzan, 1975. "Social preference ordering in a probabilistic voting model," Public Choice, Springer, vol. 24(1), pages 93-100, December.
- Sjostrom, Tomas, 1991. "A new characterization of the Groves- Clarke mechanism," Economics Letters, Elsevier, vol. 36(3), pages 263-267, July.
- McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
- Eric Maskin, 1978. "A Theorem on Utilitarianism," Review of Economic Studies, Oxford University Press, vol. 45(1), pages 93-96.
- Moulin, H., 1986. "Characterizations of the pivotal mechanism," Journal of Public Economics, Elsevier, vol. 31(1), pages 53-78, October.
- John C. Harsanyi, 1953. "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking," Journal of Political Economy, University of Chicago Press, vol. 61, pages 434.
- 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.
- Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
- Edi Karni, 1998. "Impartiality: Definition and Representation," Econometrica, Econometric Society, vol. 66(6), pages 1405-1416, November.
- Sobel, Joel, 2001. "Manipulation of Preferences and Relative Utilitarianism," Games and Economic Behavior, Elsevier, vol. 37(1), pages 196-215, October.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:627. 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 Winter)
If references are entirely missing, you can add them using this form.