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Fair criteria for social decisions under uncertainty

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  • Miyagishima, Kaname

Abstract

In a simple model where agents have ordinal and interpersonally noncomparable subjective expected utility preferences over uncertain future incomes, we analyze the implications of equity, efficiency, separability, and social rationality. Our efficiency conditions are fairly weak, because there are criticisms on the standard ex ante Pareto principle in the literature.Our social welfare criteria from the axioms satisfy ex ante equity, but violate Statewise Dominance, often referred to as ”the minimal criterion” of rationality under uncertainty.

Suggested Citation

  • Miyagishima, Kaname, 2019. "Fair criteria for social decisions under uncertainty," Journal of Mathematical Economics, Elsevier, vol. 80(C), pages 77-87.
    • Handle: RePEc:eee:mateco:v:80:y:2019:i:c:p:77-87
    DOI: 10.1016/j.jmateco.2018.10.005
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    References listed on IDEAS

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    Cited by:

    1. Sakamoto, Norihito, 2018. "Equity Criteria Based on the Dominance Principle and Individual Preferences: Refinements of the Consensus Approach," RCNE Discussion Paper Series 5, Research Center for Normative Economics, Institute of Economic Research, Hitotsubashi University.
    2. 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.

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