Empiriceme · Evidence · Theorem

Harsanyi's Aggregation

Under certain conditions, social welfare sums individual utilities.

Harsanyi's 1955 result: if individual and social preferences both satisfy expected-utility axioms, social welfare must be a weighted sum of individual utilities. The weights are what the theorem does not supply.

In practice

  • A regulator asked to compare a small certain benefit for many against a large uncertain one for few is doing exactly this arithmetic and cannot state the weights.
  • A charity allocating between two programmes must fix an exchange rate between beneficiaries, and no data supplies it.
Subject
Law & Politics
Essay
What can be proved and measured about power

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