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Identifier to cite or link to this item: https://hdl.handle.net/10086/29612

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Title
Equity Criteria Based on the Dominance Principle and Individual Preferences: Refinements of the Consensus Approach
Creator
Creator Name
Sakamoto, Norihito Sakamoto, Norihito
Affiliation
Affiliation Name
Faculty of Science and Technology, Tokyo University of Science
Editor
Contributor Name
Research Center for Normative Economics, Institute of Economic Research, Hitotsubashi University
Affiliation
Affiliation Name
Institute of Economic Research, Hitotsubashi University
Key Word
Indexing dilemma
Consensus approach
Ordinal interpersonal comparison
Universal social ordering
JEL
D60
D63
I30
I31
I32
Abstract
This paper examines the problem of the indexing dilemma in the context of an ordinal interpersonal comparison of individual situations and proposes a new class of equity criteria based on the dominance principle and individual preferences. First, we show that an interpersonal comparison ordering that satisfies the dominance principle and the monotonicity condition must be a consensus ranking, which requires that individual i's situation with consumption bundle x should be better than j's situation with y whenever all individuals strictly prefer x to y. Second, we propose a new class of equity criteria based on the worst evaluation of each person's situation, which is a class of ordering extensions of interpersonal rankings that respect the consensus condition. In addition, we show its representation theorem and characterize maximin orderings based on our criteria. Third, possibility and impossibility results between the Pareto principle and dominance methods are obtained. Then, we propose a class of median rules as another equity criterion that satisfies the weak Pareto and dominance principles.
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2018-08
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
RCNE Discussion Paper Series ; No. 5
Relation
Related Title
This paper combines the author's results from two unpublished studies: Sakamoto (2017) “A Class of Equity Criteria Based on the Dominance Principle and Individual Preferences: A New Concept of Economic Equity" and Sakamoto (2017) “A Trade-o between Pareto Local Dictatorship and Dominance Democracy in the Consensus Approach."
Related Identifier
URI
  http://www.ier.hit-u.ac.jp/rcne/Japanese/publication/dp.html
Number of Pages
24
Sponsorship
the Ministry of Education, Culture, Sports, Science and Technology
Appears in Collections
RCNE Discussion Paper Series / Research Center for Normative Economics
URL
https://hdl.handle.net/10086/29612