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Social Welfare Orderings for Different Subgroup Utility Scales

Summary: Social Welfare Orderings for Different Subgroup
Utility Scales
Anna B. Khmelnitskaya
SPb Institute for Economics and Mathematics Russian Academy of Sciences,
1 Tchaikovsky St., 191187 St.Petersburg, Russia
and Center for Rationality at The Hebrew University of Jerusalem
Givat Ram, Jerusalem 91904, Israel
(e-mail: anna@math.huji.ac.il, anna@AK3141.spb.edu)
Abstract. This paper characterizes social welfare orderings for differ-
ent scales of individual utility measurement in distinct population sub-
groups. Different combinations of ordinal, interval, ratio, and transla-
tion scales are studied. We consider situations when utility comparisons
among subgroups of individuals by unit and/or zeropoint can or cannot
be made, that is when subgroup scales are dependent or independent. We
show that for combinations of independent subgroups scales, every corre-
sponding social ordering is fully determined by the opinions of only one
subgroup of individuals and is in accord with the measurement scales
of its members' utilities. We also investigate social orderings admissi-
ble given various combinations of interval scales with a common unit
and given combinations of arbitrary ratio scales that combine individual


Source: Al Hanbali, Ahmad - Department of Applied Mathematics, Universiteit Twente


Collections: Engineering