Over the years, egalitarian philosophers have made some challenging claims about the nature of egalitarianism. They have argued that egalitarian reasoning should make us reject the Pareto principle; that the Rawlsian leximin principle is not an egalitarian idea; that the Pigou–Dalton principle needs modification; that the intersection approach faces deep problems; that the numbers should not count within an egalitarian framework, and that egalitarianism should make us reject the property of transitivity in normative reasoning. In this paper, taking the recent (...) philosophical debate on equality versus priority as the starting point, I review these claims from the point of view of an economist. (shrink)

We shall focus on moral theories that are solely concerned with promoting the benefits (e.g., wellbeing) of individuals and explore the possibility of such theories ascribing some priority to benefits to those who are worse off—without this priority being absolute. Utilitarianism (which evaluates alternatives on the basis of total or average benefits) ascribes no priority to the worse off, and leximin (which evaluates alternatives by giving lexical priority to the worst off, and then the second worst off, and so on) (...) ascribes absolute priority to the worse off (i.e., favors even a very small benefit to a worse off person over very large benefits to large numbers of better off people). Neither extreme view, we assume, is plausible. (shrink)

In this paper, we study the role of fairness motivation in bargaining. We show that bargaining between two strongly fairness motivated individuals who have different views about what represents a fair division may end in disagreement. Further, by applying the Nash bargaining solution, we study the influence of fairness motivation on the bargaining outcome when an agreement is reached. In particular, we show that the bargaining outcome is sensitive to the fairness motivation of the two individuals, unless they both consider (...) an equal division fair. We argue that our results accommodate existing experimental and field data on bargaining. (shrink)

The difference principle, introduced by Rawls (1971, 1993), is generally interpreted as leximin, but this is not how he intended it. Rawls explicitly states that the difference principle requires that aggregate benefits (e.g., average or total) to those in the least advantaged group be given lexical priority over benefits to others, where the least advantaged group includes more than the strictly worst off individuals. We study the implications of adopting different approaches to the definition of the least advantaged group and (...) show that, if acyclicity is required, several seemingly plausible approaches lead to something close to leximin. We then show that significant aggregation is possible, if the least advantaged group is defined as those with those with less benefits than some strictly positive transform of the lowest level of benefits. Finally, we discuss the implications of requiring that, in comparing two alternatives, the cutoff for the least advantaged group of one alternative be the same as that for the other alternative. (shrink)

The most influential egalitarian perspective is undoubtedly Rawls's (1971, 1993), which assigns absolute priority to the least advantaged in society (the difference principle). However, many have claimed that even though an egalitarian perspective should imply some priority to the worst off, the Rawlsian perspective is too demanding. One response to this criticism is to argue in favour of an egalitarian perspective that never assigns absolute priority to the worse off, but which still includes limited priority to those members of society (...) in distributive conflicts. A different response to the demandingness criticism is to agree that the worse off should not always be given absolute priority, but to argue that there are some cases where they should be. In this paper, we elaborate on this view, and look at the possibility of deviating from the leximin approach within this category of egalitarian principles. (shrink)

in Intergenerational Equity and Sustainability, edited by John Roemer and Kotaro Suzumura, (Palgrave Publishers Ltd., forthcoming 2007), ch.11.

A liberal egalitarian theory of justice seeks to combine the values of equality, personal freedom, and personal responsibility. It is considered a much more promising position than strict egalitarianism, because it supposedly provides a fairness argument for inequalities reflecting differences in choice. However, we show that it is inherently difficult to fulfill this ambition. We present a liberal egalitarian paradox which shows that there does not exist any robust reward system that satisfies a minimal egalitarian and a minimal liberal requirement. (...) Moreover, we demonstrate how libertarianism may be justified in this framework if we drop the egalitarian condition. (shrink)

Norwegian School of Economics and Business Administration and Chr. Michelsen Institute, Norway, bertil.tungodden{at}nhh.no ' + u + '@' + d + ' '//--> Liberal egalitarian theories of justice argue that inequalities arising from non-responsibility factors should be eliminated, but that inequalities arising from responsibility factors should be accepted. This article discusses how the fairness argument for redistribution within a liberal egalitarian framework is affected by a relocation of the cut between responsibility and non-responsibility factors. The article also discusses the claim (...) that equalization of some non-responsibility factors will reduce the ideal level of redistribution. Key Words: responsibility • liberal egalitarianism • redistribution. (shrink)

Fairness preferences fundamentally affect individual behavior and play an important role in shaping social and political institutions. However, people differ both with respect to what they view as fair and with respect to how much weight they attach to fairness considerations. In this article, we study the role of family background in explaining these heterogeneities in fairness preferences. In particular, we examine how socioeconomic background relates to fairness views and to how people make trade-offs between fairness and self-interest. To study (...) this, we conducted an economic experiment with a representative sample of 14- to 15-year-old and matched the experimental data to administrative data on parental income and education. The participants made two distributive choices in the experiment. The first choice was to distribute money between themselves and another participant in a situation where there was no difference in merit. The second choice was to distribute money between two other participants with unequal merits. Our main finding is that there is a systematic difference in fairness view between children from low-socioceconomic status families and the rest of the participants; more than 50 percent of the participants from low-SES families are egalitarians, whereas only about 20 percent in the rest of the sample hold this fairness view. In contrast, we find no significant difference in the weight attached to fairness between children from different socioeconomic groups. (shrink)

University of Oslo and Norwegian School of Economics and Business Administration, Norway We look at how one should reward effort without rewarding talent. One way to approach this issue is to ask how an increase in one individual's effort should be allowed to affect the post-tax income of others. The article provides characterizations of three main classes of redistribution mechanism on the basis of how these answer this question. Key Words: reward • effort • responsibility • equal opportunity • distributive (...) justice. (shrink)

ABSTRACT The past fifteen years or so have witnessed considerable progress in our understanding of how the human brain works. One of the objectives of the fast-growing field of neuroscience is to deepen our knowledge of how the brain perceives and interacts with the external world. Advances in this direction have been made possible by progress in brain imaging techniques and by clinical data obtained from patients with localized brain lesions. A relatively new field within neuroscience is neuroeconomics, which focuses (...) on individual decision making and aims to systematically classify and map the brain activity that correlates with decision-making that pertains to economic choices. Neuroeconomic studies rely heavily on functional magnetic resonance imaging (fMRI), which measures the haemodynamic response (that is, changes in the blood flow) related to neural activity in the brain. (shrink)

The paradigm for modelling decision-making under uncertainty has undoubtedly been the theory of Expected Utility, which was first developed by von Neumann and Morgenstern (1944) and later extended by Savage (1954) to the case of subjective uncertainty. The inadequacy of the theory of Subjective Expected Utility (SEU) as a descriptive theory was soon pointed out in experiments, most famously by Allais (1953) and Ellsberg (1961). The observed departures from SEU noticed by Allais and Ellsberg became known as “paradoxes”. The Ellsberg (...) paradox gave rise, several years later, to a new literature on decision-making under ambiguity. The theoretical side of this literature was pioneered by Schmeidler (1989). This literature views the departures from SEU in situations similar to those discussed by Ellsberg as rational responses to ambiguity. The rationality is “recovered” by relaxing Savage's Sure-Thing principle and adding an ambiguity-aversion postulate. Thus the ambiguity-aversion literature takes a normative point of view and does consider Ellsberg-type choices as behavioural “anomalies”. (shrink)

This commentary argues that the observed heterogeneity in fairness views, documented in many economic experiments, poses a challenge to the partner choice theory developed by Baumard et al. It also discusses the extent to which their theory can explain how people consider inequalities due to pure luck.

Where there is a fixed population (i.e., who exists does not depend on what choice an agent makes), the deontic version of anonymous Paretian egalitarianism holds that an option is just if and only if (1) it is anonymously Pareto optimal (i.e., no feasible alternative has a permutation that is Pareto superior), and (2) it is no less equal than any other anonymously Pareto optimal option. We shall develop and discuss a version of this approach for the variable population case (...) (i.e., where who exists does depend on what choice an agent makes). More specifically, we shall develop and discuss it in the context of a person-affecting framework—in which an option is just if and only if it wrongs no one according to certain plausible conditions on wronging. (shrink)