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Notes on Effective Freedom

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  • James Foster

Abstract

This paper presents an intuitive approach for comparing opportunity sets in freedom they offer. The decision maker faces a range of scenarios, here modeled as a collection of possible preference orderings over alternatives. One set is said to have greater effective freedom if, for each preference ordering, it contains an alternative that dominates all the alternatives in the second set. The properties of the effective freedom ranking are explored and various full and partial representations are presented. A key example is provided that shows how the effective freedom relation can rank sets even when the preference orderings strongly disagree with one another. Depending on the collection of preferences, the approach can generate the indirect utility ranking, for which unchosen alternatives have no value, or the Pattanaik and Xu (1990) cardinality ranking, in which every alternative has the same intrinsic value.

Suggested Citation

  • James Foster, 2010. "Notes on Effective Freedom," OPHI Working Papers ophiwp034, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp034
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    File URL: http://workingpapers.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP034.pdf
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    Cited by:

    1. James J. Heckman & Chase O. Corbin, 2016. "Capabilities and Skills," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 17(3), pages 342-359, July.

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