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Egalitarianism, utilitarianism, and the Nash bargaining solution

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  • Shiran Rachmilevitch

    (University of Haifa)

Abstract

A bargaining solution satisfies egalitarian–utilitarian monotonicity (EUM) if the following holds under feasible-set-expansion: a decrease in the value of the Rawlsian (resp. utilitarian) objective is accompanied by an increase in the value of the utilitarian (resp. Rawlsian) objective. A bargaining solution is welfarist if it maximizes a symmetric and strictly concave social welfare function. Every 2-person welfarist solution satisfies EUM, but for $$n\ge 3$$ n ≥ 3 every n-person welfarist solution violates it. In the presence of other standard axioms, EUM characterizes the Nash solution in the 2-person case, but leads to impossibility in the n-person case.

Suggested Citation

  • Shiran Rachmilevitch, 2019. "Egalitarianism, utilitarianism, and the Nash bargaining solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(4), pages 741-751, April.
    • Handle: RePEc:spr:sochwe:v:52:y:2019:i:4:d:10.1007_s00355-018-01170-6
    DOI: 10.1007/s00355-018-01170-6
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    References listed on IDEAS

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    Cited by:

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    4. Mark Schneider & Byung‐Cheol Kim, 2020. "The utilitarian–maximin social welfare function and anomalies in social choice," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 629-646, October.

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