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Extended Pareto rules and relative utilitarianism

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  • Amrita Dhillon

    (Department of Economics, University of Warwick, Coventry CV4 7AL, UK)

Abstract

This paper introduces the "Extended Pareto" axiom on Social Welfare Functions and gives a characterization of the axiom when it is assumed that the Social Welfare Functions that satisfy it in a framework of preferences over lotteries also satisfy the restrictions (on the domain and range of preferences) implied by the von-Neumann Morgenstern axioms. With the addition of 2 other axioms: "Anonymity" and a weak version of Arrow's Independence of Irrelevant Alternatives axiom: "Weak IIA" it is shown that there is a unique Social Welfare Function called "Relative Utilitarianism" that consists of normalising individual utilities between 0 and 1 and adding them.

Suggested Citation

  • Amrita Dhillon, 1998. "Extended Pareto rules and relative utilitarianism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(4), pages 521-542.
    • Handle: RePEc:spr:sochwe:v:15:y:1998:i:4:p:521-542
    Note: Received: 7 June 1994 / Accepted: 28 April 1997
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