Learn More
shop on decision under uncertainty are gratefully acknowledged. Comments by an anonymous referee and the associate editor have been useful to improve the paper. Financial support from the French Ministry of Research (Action concertée incitative) and the Ministry of Environment (S3E) is gratefully acknowledged. Abstract This paper presents an axiomatic model(More)
We provide a general impossibility theorem on the aggregation of preferences under uncertainty. We axiomatize in the Anscombe-Aumann setting a wide class of preferences, called rank-dependent additive preferences that includes most known models of decision under uncertainty as well as state-dependent versions of these models. We prove that aggregation is(More)
The most usual procedure when facing decisions in complex settings consists in consulting experts, aggregating the information they provide, and deciding on the basis of this aggregated information. We argue that such a procedure entails a substantial loss, insofar as it precludes the possibility to take into account simultaneously the decision maker's(More)
In this paper, we provide an axiomatic characterization of social welfare functions for uncertain incomes. Our most general result is that a small number of reasonable assumptions regarding welfare orderings under uncertainty rule out pure ex ante as well as pure ex post evaluations. Any social welfare function that satisfies these axioms should lie(More)
The (generalized) Gini indices rely on the social welfare function of a decision maker who behaves in accordance with Yaari's model, with a function f that transforms frequencies. This SWF can also be represented as the weighted sum of the welfare of all the possible coalitions in the society, where the welfare of a coalition is defined as the income of the(More)
We reconsider the principles of diminishing transfer (introduced by Kolm (1976)) and dual diminishing transfer (introduced by Mehran (1976)). It appears that if a Rank Dependent Expected Utility (RDEU) maximizer respects the principle of diminishing (resp. dual diminishing) transfer, then he behaves in accordance with the Expected Utility model (resp.(More)
This paper introduces a model of inequality aversion that captures a preference for equality of ex-ante expected payoff relative to a preference for equality of ex-post payoff by a single parameter. On deterministic allocations, the model reduces to the model of Fehr and Schmidt (1999). The model provides a unified explanation for recent experiments on(More)
Since the order generated by the Lorenz criterion is partial, it is a natural question to wonder how to extend this order. Most of the literature that is concerned with that question focuses on local changes in the income distribution. We follow a different approach, and define uniform α−spreads, which are global changes in the income distribution. We give(More)