The problem of preferences aggregation

Need to give up ordinal utility functions structure

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Unformatted text preview: person is better o Pareto efficacy  ­ Cannot make a person better off without making someone else worse off  ­Only policies which approved unanimously should be adopted This would make our work of little interest  ­Departing from the Pareto criterion requires interpersonal comparability of utilities. Need to give up ordinal utility functions Structure Induced Equilibrium  ­institutional structure {in the form of rules of jurisdiction and amendment control ­ has an important independent impact on the existence of equilibrium and, together with the distrib...
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This document was uploaded on 03/10/2014 for the course AECO 1330A at Sciences Po.

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