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Spurious Unanimity And The Pareto Principle

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  • Mongin, Philippe

Abstract

The Pareto principle states that if the members of society express the same preference judgement between two options, this judgement is compelling for society. A building block of normative economics and social choice theory, and often borrowed by contemporary political philosophy, the principle has rarely been subjected to philosophical criticism. The paper objects to it on the ground that it applies indifferently to those cases in which the individuals agree both on their expressed preferences and on their reasons for entertaining them, and those cases in which they agree on their expressed preferences while differing on their reasons. The latter are cases of ‘spurious unanimity’, and it is normatively inappropriate, or so the paper argues, to defend unanimity preservation at the social level for such cases: thus the Pareto principle is formulated much too broadly. The objection seems especially powerful when the principle is applied in an ex ante context of uncertainty, in which individuals can disagree on both their probabilities and utilities, and nonetheless agree on their preferences over prospects.

Suggested Citation

  • Mongin, Philippe, 2016. "Spurious Unanimity And The Pareto Principle," Economics and Philosophy, Cambridge University Press, vol. 32(3), pages 511-532, November.
  • Handle: RePEc:cup:ecnphi:v:32:y:2016:i:03:p:511-532_00
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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. Antoine Billot & Sujoy Mukerji & Jean-Marc Tallon, 2020. "Market Allocations under Ambiguity: A Survey," Revue économique, Presses de Sciences-Po, vol. 71(2), pages 267-282.
    4. Chen Li, 2022. "Preference Aggregation with a Robust Pareto Criterion," KIER Working Papers 1086, Kyoto University, Institute of Economic Research.
    5. ÅžimÅŸek, Alp, 2021. "The Macroeconomics of Financial Speculation," CEPR Discussion Papers 15733, C.E.P.R. Discussion Papers.
    6. McCarthy, David & Mikkola, Kalle & Thomas, Teruji, 2016. "Utilitarianism with and without expected utility," MPRA Paper 72578, University Library of Munich, Germany.
    7. Satoshi Nakada & Shmuel Nitzan & Takashi Ui, 2022. "Robust Voting under Uncertainty," Working Papers on Central Bank Communication 038, University of Tokyo, Graduate School of Economics.
    8. 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.
    9. Luigi Alberto Franzoni, 2022. "Efficient liability law when parties genuinely disagree," Working Papers wp1176, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Sujoy Mukerji & Han N. Ozsoylev & Jean‐Marc Tallon, 2023. "Trading Ambiguity: A Tale Of Two Heterogeneities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(3), pages 1127-1164, August.
    11. 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.
    12. Fleurbaey, Marc & Zuber, Stéphane, 2017. "Fair management of social risk," Journal of Economic Theory, Elsevier, vol. 169(C), pages 666-706.
    13. Wang, Weijia, 2019. "A Pareto Criterion on Systemic Risk," MPRA Paper 93699, University Library of Munich, Germany.
    14. 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.
    15. Florian Brandl, 2020. "Belief-Averaged Relative Utilitarianism," Papers 2005.03693, arXiv.org, revised Aug 2021.
    16. Crès, Hervé & Tvede, Mich, 2018. "Regulation of trades based on differences in beliefs," European Economic Review, Elsevier, vol. 101(C), pages 133-141.
    17. Takashi Hayashi, 2021. "Collective decision under ignorance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(2), pages 347-359, August.
    18. Weijia Wang & Shaoan Huang, 2021. "Risk sharing and financial stability: a welfare analysis," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(1), pages 211-228, January.
    19. Jean Baccelli & Marcus Pivato, 2021. "Philippe Mongin (1950–2020)," Theory and Decision, Springer, vol. 90(1), pages 1-9, February.
    20. Itai Sher, 2020. "How perspective-based aggregation undermines the Pareto principle," Politics, Philosophy & Economics, , vol. 19(2), pages 182-205, May.
    21. Pivato, Marcus, 2022. "Bayesian social aggregation with accumulating evidence," Journal of Economic Theory, Elsevier, vol. 200(C).
    22. 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.
    23. Marc Fleurbaey, 2020. "Philippe Mongin 1950–2020," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 399-403, October.
    24. 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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