Aggregating sets of von Neumann-Morgenstern utilities
Eric Danan (),
Thibault Gajdos () and
Jean-Marc Tallon ()
PSE - Labex "OSE-Ouvrir la Science Economique" from HAL
We analyze the aggregation problem without the assumption that individuals and society have fully determined and observable preferences. More precisely, we endow individuals ans society with sets of possible von Neumann-Morgenstern utility functions over lotteries. We generalize the classical neutrality assumption to this setting and characterize the class of neutral social welfare function. This class turns out to be considerably broader for indeterminate than for determinate utilities, where it basically reduces to utilitarianism. In particular, aggregation rules may differ by the relationship between individual and social indeterminacy. We characterize several subclasses of neutral aggregation rules and show that utilitarian rules are those that yield the least indeterminate social utilities, although they still fail to systematically yield a determinate social utility.
Keywords: Aggregation; vNM utility; indeterminacy; neutrality; utilitarianism (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00788647
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Published in Journal of Economic Theory, Elsevier, 2013, 148 (2), pp.663-688. ⟨10.1016/j.jet.2012.12.018⟩
Downloads: (external link)
Journal Article: Aggregating sets of von Neumann–Morgenstern utilities (2013)
Working Paper: Aggregating sets of von Neumann-Morgenstern utilities (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:pseose:halshs-00788647
Access Statistics for this paper
More papers in PSE - Labex "OSE-Ouvrir la Science Economique" from HAL
Bibliographic data for series maintained by CCSD ().