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3,365
result(s) for
"Social welfare functions"
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Extensive measurement in social choice
Extensive measurement is the standard measurement-theoretic approach for constructing a ratio scale. It involves the comparison of objects that can be concatenated in an additively representable way. This paper studies the implications of extensively measurable welfare for social choice theory. We do this in two frameworks: an Arrovian framework with a fixed population and no interpersonal comparisons, and a generalized framework with variable populations and full interpersonal comparability. In each framework we use extensive measurement to introduce novel domain restrictions, independence conditions, and constraints on social evaluation. We prove a welfarism theorem for these domains and characterize the social welfare functions that satisfy the axioms of extensive measurement at both individual and social levels. The main results are simple axiomatizations of strong dictatorship in the Arrovian framework and classical utilitarianism in the generalized framework.
Journal Article
Salience and social choice
by
Leland, Jonathan W.
,
Schneider, Mark
in
Behavioral/Experimental Economics
,
Decision making models
,
Economic theory
2021
The axioms of expected utility and discounted utility theory have been tested extensively. In contrast, the axioms of social welfare functions have only been tested in a few questionnaire studies involving choices between hypothetical income distributions. In a controlled experiment with 100 subjects placed in the role of social planners, we test five fundamental properties of social welfare functions to determine the efficacy of traditional social choice models in predicting social planner allocations when presented with choice sets designed to test the axioms of the theory. We find that three properties of the standard social welfare functions tested are systematically violated, producing an Allais paradox, a common ratio effect, and a framing effect in social choice. We find support for scale invariance and a preference for tail-increasing transfers. Our experiment also enables us to test a model of salience-based social choice which predicts the systematic deviations and highlights the close relationship between these anomalies and the classical paradoxes for risk and time.
Journal Article
Constituting an Islamic social welfare function: an exploration through Islamic moral economy
2021
Purpose
This study aims to theoretically explore and examine the possibility of developing an Islamic social welfare function (ISWF) within the Islamic moral economy (IME) frame by going beyond the traditional fiqhī approach. It focuses on issues of preference ordering and utility through the normative dimension of Islamic ontology, as expressed and articulated within the IME.
Design/methodology/approach
Being a theoretical paper, a conceptual and critical discursive approach is used in this paper.
Findings
To establish an ISWF, a narrow juristic approach remains inadequate; there is a need to integrate the substantive morality to complement the juristic approach to achieve the ihsani process as the ultimate individual objective, which makes an ISWF possible. As the scattered debate on the topic concentrates mainly on the juristic approach, the main contribution of this study is to present a model in which juristic and moralist positions endogenized and augmented to constitute ISWF.
Originality/value
As there is a limited amount of research available on the subject matter, this paper will be an important theoretical contribution. In addition, this study develops an IME approach rather than fiqh-based approach used in the available research, which makes it novel.
Journal Article
Generalized Utilitarianism and Harsanyi's Impartial Observer Theorem
by
Kajii, Atsushi
,
Safra, Zvi
,
Polak, Ben
in
2002 Economics and Econometrics
,
Accidents
,
Applications
2010
Harsanyi's impartial observer must consider two types of lotteries: imaginary identity lotteries (“accidents of birth”) that she faces as herself and the real outcome lotteries (“life chances”) to be faced by the individuals she imagines becoming. If we maintain a distinction between identity and outcome lotteries, then Harsanyi‐like axioms yield generalized utilitarianism, and allow us to accommodate concerns about different individuals' risk attitudes and concerns about fairness. Requiring an impartial observer to be indifferent as to which individual should face similar risks restricts her social welfare function, but still allows her to accommodate fairness. Requiring an impartial observer to be indifferent between identity and outcome lotteries, however, forces her to ignore both fairness and different risk attitudes, and yields a new axiomatization of Harsanyi's utilitarianism.
Journal Article
Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian
by
Basu, Kaushik
,
Mitra, Tapan
in
Applied sciences
,
Axioms
,
Calculus of variations and optimal control
2003
It has been known that, in aggregating infinite utility streams, there does not exist any social welfare function, which satisfies the axioms of Pareto, intergenerational equity, and continuity. We show that the impossibility result persists even without imposing the continuity axiom, and in frameworks allowing for more general domains of utilities than those used in the existing literature.
Journal Article
Kalai and Muller’s possibility theorem: a simplified integer programming version
2018
We provide a respecification of an integer programming characterization of Arrovian social welfare functions introduced by Sethuraman et al. (Math Oper Res 28:309–326, 2003). By exploiting this respecification, we give a new and simpler proof of Theorem 2 in Kalai and Muller (J Econ Theory 16:457–469, 1977).
Journal Article
Is more health always better for society? Exploring public preferences that violate monotonicity
by
Tsuchiya, Aki
,
Abásolo, Ignacio
in
Applied sciences
,
Behavioral/Experimental Economics
,
Clients
2013
There has recently been some literature on the properties of a Health-Related Social Welfare Function (HRSWF). The aim of this article is to contribute to the analysis of the different properties of a HRSWF, paying particular attention to the monotonicity principle. For monotonicity to be fulfilled, any increase in individual health—other things equal—should result in an increase in social welfare. We elicit public preferences concerning trade-offs between the total level of health (concern for efficiency) and its distribution (concern for equality), under different hypothetical scenarios through face-to-face interviews. Of key interests are: the distinction between non-monotonic preferences and Rawlsian preferences; symmetry of HRSWF; and the extent of inequality neutral preferences. The results indicate strong support for non-monotonic preferences, over Rawlsian preferences. Furthermore, the majority of those surveyed had preferences that were consistent with a symmetric and inequality averse HRSWF.
Journal Article
Non-paternalistic Benevolence, Consumption Externalities and the Liberal Social Contract
We examine the regulation of general consumption externalities by the liberal social contract. First-best liberal social contracts redistribute individual wealth and determine the level of provision of public commodities to achieve a Pareto-efficient allocation of resources that is unanimously preferred to the allocation of a hypothetical initial situation of perfect communication. We show that the social welfare functionals that aggregate individual social preferences by means of the generalized bargaining solution of Nash support the liberal social contract if they verify non-paternalistic benevolence, that is, if the associate social welfare functions are strictly increasing in the private welfare of all individuals. The existence of a liberal social contract follows as a corollary of this property of supportability. We characterize the liberal social contract as a case of application of Habermas’s norms of communicative action to the allocation of scarce resources by public finance and the market.
Journal Article
Optimal Income Taxation Theory and Principles of Fairness
2018
The achievements and limitations of the classical theory of optimal labor-income taxation based on social welfare functions are now well known. Even though utilitarianism still dominates public economics, recent interest has arisen for broadening the normative approach and making room for fairness principles such as desert or responsibility. Fairness principles sometimes provide immediate recommendations about the relative weights to assign to various income ranges, but in general require a careful choice of utility representations embodying the relevant interpersonal comparisons. The main message of this paper is that the traditional tool of welfare economics, the social welfare function framework, is flexible enough to incorporate many approaches, from egalitarianism to libertarianism.
Journal Article
A Multi-Criteria and Multi-Agent Framework for supporting complex decision-making processes
by
Bañares-Alcántara, René
,
Pires, Eduardo Cleto
,
Leoneti, Alexandre Bevilacqua
in
Agents
,
Complexity
,
Convergence
2022
A framework for modeling multi-criteria and multi-agent decision making processes as a non-cooperative game including a phase for solving the game by using the concept of equilibrium solution is presented. In the presence of a non-singular solution, the framework includes a phase for refining the solution by the application of a social welfare function. The framework is named Multi-Criteria and Multi-Agent Framework. The framework makes possible the strategic performance in complex decision-making, creating transparency within the process of selecting alternatives that are under evaluation in a multi-criteria perspective by agents with heterogeneous preferences. This paper includes a simulation to demonstrate the applicability of the framework to a complex engineering problem such as the choice of a Wastewater Treatment Plant for a municipality. Convergence of choices of five experts that participated in the simulation was demonstrated by the application of the framework.
Journal Article