Abstract
We propose a straightforward dominance procedure for comparing social welfare orderings (swos) with respect to the degree of inequality aversion they express. Three versions of the procedure are considered, each of which uses a different underlying criterion of inequality comparisons: (i) a concept based on the lorenz quasi-ordering, which we argue to be the ideal version, (ii) a concept based on a minimalist criterion of inequality, and (iii) a concept based on the relative differentials quasi-ordering. It turns out that the traditional arrow–pratt approach is equivalent to the latter two concepts for important classes of swos, but that it is profoundly inconsistent with the lorenz-based concept. With respect to the problem of combining extreme inequality aversion and monotonicity, concepts (ii) and (iii) identify as extremely inequality averse a class of swos that includes leximin as a special case, whereas the lorenz-based concept (i) concludes that extreme inequality aversion and monotonicity are incompatible.
Original language | English |
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Pages (from-to) | 405-428 |
Number of pages | 24 |
Journal | Social Choice and Welfare |
Volume | 29 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Jan 2007 |