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Probability Adjusted Rank-Discounted Utilitarianism

Author

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  • Geir B. Asheim
  • Stéphane Zuber

Abstract

We propose and axiomatize probability adjusted rank-discounted critical-level generalized utilitarianism (PARDCLU). We thus generalize rank-discounted utilitarianism (RDU) (proposed by Zuber and Asheim, 2012) to variable population and risky situations and thereby take important steps towards preparing RDU for practical use, e.g. for evaluation of climate policies and other policy issues with long-run consequences. We illustrate how PARDCLU yields rank-dependent expected utilitarianism - but with additional structure - in a special case, and show how PARDCLU can handle a situation with positive probability of human extinction.

Suggested Citation

  • Geir B. Asheim & Stéphane Zuber, 2014. "Probability Adjusted Rank-Discounted Utilitarianism," CESifo Working Paper Series 4728, CESifo.
    • Handle: RePEc:ces:ceswps:_4728
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    References listed on IDEAS

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    Cited by:

    1. Piacquadio, Paolo G., 2020. "The ethics of intergenerational risk," Journal of Economic Theory, Elsevier, vol. 186(C).
    2. Fleurbaey, Marc & Zuber, Stéphane, 2015. "Discounting, risk and inequality: A general approach," Journal of Public Economics, Elsevier, vol. 128(C), pages 34-49.

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    More about this item

    Keywords

    social evaluation; population ethics; decision-making under risk; critical-level utilitarianism; social discounting;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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