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Will of the living dead — The case for a backward-looking welfare function

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  • Ahlvik, Lassi

Abstract

Many people have preferences over choices taking place after their lifetime. I show that a backward-looking welfare function, keeping preferences of the dead alive, is Pareto-improving and can be sustained as a subgame-perfect equilibrium of the intergenerational game.

Suggested Citation

  • Ahlvik, Lassi, 2022. "Will of the living dead — The case for a backward-looking welfare function," Economics Letters, Elsevier, vol. 214(C).
    • Handle: RePEc:eee:ecolet:v:214:y:2022:i:c:s0165176522000817
    DOI: 10.1016/j.econlet.2022.110418
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    References listed on IDEAS

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    1. Erlend Berg, 2018. "Funeral Insurance: An Inter-Generational Commitment Device?," Journal of African Economies, Centre for the Study of African Economies, vol. 27(3), pages 321-346.
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    5. Theodore C. Bergstrom, 1999. "Systems of Benevolent Utility Functions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 71-100, January.
    6. B. Douglas Bernheim, 1989. "Intergenerational Altruism, Dynastic Equilibria and Social Welfare," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 119-128.
    7. Hori, Hajime & Kanaya, Sadao, 1989. "Utility functionals with nonpaternalistic intergenerational altruism," Journal of Economic Theory, Elsevier, vol. 49(2), pages 241-265, December.
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    More about this item

    Keywords

    Backward-looking welfare function; Repeated game; Intertemporal social choice;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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