This article argues that there is a natural solution to carry out interpersonal comparisons of utility when the theory of gambles is supplemented with a group operation of joint receipts. If so, three types of people can exist, and the two types having multiplicative representations of joint receipt have, in contrast to most utility theories, absolute scales of utility. This makes possible, at least in principle, meaningful interpersonal comparisons of utility with desirable properties, thus (...) resolving a long standing philosophical problem and having potentially important implications in economics. Two behavioral criteria are given for the three classes of people. At this point the relative class sizes are unknown. (shrink)

On the orthodox view in economics, interpersonal comparisons of utility are not empirically meaningful, and "hence" impossible. To reassess this view, this paper draws on the parallels between the problem of interpersonal comparisons of utility and the problem of translation of linguistic meaning, as explored by Quine. I discuss several cases of what the empirical evidence for interpersonal comparisonsof utility might be and show that, even on the strongest of these, interpersonal comparisons are (...) empirically underdetermined and, if we also deny any appropriate truth of the matter, indeterminate. However, the underdetermination can be broken non-arbitrarily (though not purely empirically) if (i) we assign normative significance to certain states of affairs or (ii) we posit a fixed connection between certain empirically observable proxies and utility. I conclude that, even if interpersonal comparisons are not empirically meaningful, they are not in principle impossible. (shrink)

’Tis vain to talk of adding quantities which after the addition will continue to be as distinct as they were before; one man’s happiness will never be another man’s happiness: a gain to one man is no gain to another: you might as well pretend to add 20 apples to 20 pears.

This paper presents the experimental results of a “Transcontinental Ultimatum Game” implemented between India and France. We use a standard ultimatum game, but in one treatment Indian subjects made offers to French subjects (ItoF treatment) and, in another treatment, French subjects made offers to Indian subjects (FtoI treatment). We observed that FtoI treatment bargaining mostly ended up with unequal splits of money in favor of French, while nearly equal splits were the most frequent outcome in ItoF treatment interactions. The experimental (...) results are organized through a standard social reference model, modified for taking into account the different marginal value of money for bargainers. In our model bargaining is driven by relative standings comparisons between players, occurring in terms of real earnings (that is monetary earnings corrected for a purchasing power factor) obtained in the game. The norm of equity behind the equalization of real earnings is called local equity norm, and contrasted to a global equity norm which would encompass the wealth of players beyond the game. According to what we observed, no beyond-game concern seems to be relevantly endorsed by subjects. (shrink)

The main question of this paper is how people may agree in their interpersonal comparisons of wellbeing. These comparisons are important in social ethics and for policy purposes. The paper firstly examines grounds for convergence in easy cases. Then comes a more difficult case of low convergence in order to explore a way to increase it. For this, concepts from the empirical subjective well-being literature are used: life satisfaction and vignettes. Ideas of John Harsanyi and Serge Kolm thereby receive (...) a new look. (shrink)

Several philosophers have argued that interpersonal comparisons of utility are problematic or even impossible, and that this poses a problem for the thesis that pleasure is a legitimate, measurable quantity. This, in turn, is thought to pose a problem of some kind for a variety of normative ethical and axiological theories. Perhaps it is supposed to show that utilitarianism or hedonism is false, or is supposed to show that there is no genuine hedonic calculus, or that any view (...) that presupposes that pleasure and pain are morally relevant is false or untenable. Its proponents begin by noticing that interpersonal comparisons of pleasure and pain are impossible in some relevant sense. This impossibility has been exploited by different philosophers for different purposes. It is clear, however, that a great many ethical theories rely in some way on the thesis that pleasure is measurable, and that its incoherence therefore threatens a great many theories in ethics. The purpose of this paper is to survey several of the most interesting versions of this argument; then to explain several attempts to respond to the problem, and to explain why each attempt fails; then to present, explain, and defend the correct solution to the problem. (shrink)

review of two similar collections on well-being.

Most moral and political theories require us to make interpersonal comparisons of welfare. This poses a challenge to the popular view that welfare consists in the satisfaction of preferences or des...

Can a preference-based conception of welfare accommodate changes in people's preferences? I argue that the fact that people care about which preferences they have, and the fact that people can change their preferences about which preferences it is good for them to have, together undermine the case for accepting a preference-satisfaction conception of welfare.

This paper provides a philosophical critique of social choice theory insofar as it deals with the normative evaluation of voting and voting rules. I will argue that the very method of evaluating voting rules in terms of whether they satisfy various conditions is deeply problematic because introducing strategic behaviour leads to a violation of any condition that makes a difference between voting rules. I also argue that it is legitimate to make interpersonal comparisons of utilities in voting theory. Combining (...) a realistic account of voters’ behaviour with a utilitarian evaluation of the outcomes then leads to the judgment that strategic voting is beneficial. If it is, then Arrow's theorem does not have far-reaching consequences for democracy because one of its conditions is not normatively acceptable. (shrink)

This paper builds upon, but substantially revises, John Harsanyi's concept of ‘extended preferences’. An individual ‘history’ is a possible life that some person (a subject) might lead. Harsanyi supposes that a given spectator, formulating her ethical preferences, can rank histories by empathetic projection: putting herself ‘in the shoes’ of various subjects. Harsanyi then suggests that interpersonal comparisons be derived from the utility function representing spectators’ (supposedly common) ranking of history lotteries. Unfortunately, Harsanyi's proposal has various flaws, including some (...) that have hitherto escaped scholarly attention. In particular, it ignores the limits of personal identity. If the subject has welfare-relevant attributes that the spectator cannot acquire without changing who she is, full empathetic identification of the latter with the former becomes impossible. This paper proposes instead to usesympathyas the attitude on a spectator's part that allows us to make sense of her extended preferences. Sympathy – an attitude of care and concern – is a psychological state quite different from empathy. We should also allow for hetereogeneity in spectators’ extended preferences. Interpersonal comparisons emerge from a plurality of sympathetic spectators, not (as per Harsanyi) from a common empathetic ranking. (shrink)

Many ethical theories, including in particular consequentialist moral the ories, require comparisons of the amount of good possessed or received by different people. In the case of some goods, such as monetary income, wealth, education, or health, such comparisons are relatively unproblematic. Even in the case of such goods there may be serious empirical measurement problems, but there appear to be no difficulties in principle. Thus Cooter and Rappoport maintained that there was no serious difficulty of making interpersonal (...) class='Hi'>utility comparisons for an earlier generation of economists who regarded utility as an index of “material welfare.”. (shrink)

The issue of interpersonal comparisons of utility is about the possibility (or not) of comparing the utility or welfare or the mental states in general, of different individuals. Embedded in the conceptual framework of utilitarianism, interpersonal comparisons were admissible in economics as part of the theoretical justification of welfare policies until the first decades of the twentieth century. Under the strong influence of the scientific philosophy of positivism as reflected in the works of early neoclassical economists (...) and as epitomized by Lionel Robbins, utility comparisons were subsequently rejected as a value judgement. Robbins’ methodological stance is still prevalent among mainstream economists. Despite the explicit rejection of comparability by the majority of economists, interpersonal comparisons are necessary for many key policy issues, such as progressive taxation, social welfare policies, GDP-based welfare comparisons, cost–benefit analysis, and public goods provision. In this paper, the case of interpersonal utility comparisons is discussed as an illustrative example of the usefulness of the study of the role of value judgements, and generally of the interrelationship between ethics and economics. It is argued that the current tension between theory and policy practice might be resolved through the efforts of prominent economists and philosophers to challenge positivism, and especially its problematic treatment of value judgements and of ethical assumptions in general. The discussion also provides more strength to the view that policy makers and their economic advisers cannot avoid ethical questions in their analysis of the workings of the economic system. (shrink)

A major problem for interpersonal aggregation is how to compare utility across individuals; a major problem for decision-making under normative uncertainty is the formally analogous problem of how to compare choice-worthiness across theories. We introduce and study a class of methods, which we call statistical normalization methods, for making interpersonal comparisons of utility and intertheoretic comparisons of choice-worthiness. We argue against the statistical normalization methods that have been proposed in the literature. We argue, instead, in favor (...) of normalization of variance: we claim that this is the account that most plausibly gives all individuals or theories ‘equal say’. To this end, we provide two proofs that variance normalization has desirable properties that all other normalization methods lack, though we also show how different assumptions could lead one to axiomatize alternative statistical normalization methods. (shrink)

Until quite recently, it has appeared that eleutheric-conjectural libertarianism (ECL) could not avoid some degree of, very broad, interpersonal utility comparisons (IUCs). And this has been objected to by some of its libertarian critics, notably economists and propertarians. Indeed, this aspect does make the theory less compatible with economics than the rest of the theory and it is thereby a significant problem. This is because one of the main problems that ECL is intended to solve is how an (...) abstract theory of liberty can be compatible with the pro-free-market conclusions of many economists. Being more compatible with economics should make ECL theory more comprehensive, comprehensible, and cogent. (shrink)

According to a popular strategy amongst economists and philosophers, in order to solve the problem of interpersonal utility comparisons, we have to look at how ordinary people make such comparisons in everyday life. The most recent attempt to develop this strategy has been put forward by Goldman in his “Simulation and Interpersonal Utility” (Ethics 4:709–726, 1995). Goldman claims, first, that ordinary people make interpersonal comparisons by simulation and, second, that simulation is reliable for making (...) class='Hi'>interpersonal comparisons. In this paper, I focus on Goldman’s latter claim. After updating Goldman’s account of how ordinary people make interpersonal comparisons in the light of Goldman’s newest formulation of his simulation theory of mental ascription (Goldman, Simulating Minds. Oxford University Press, Oxford, 2006), I develop and assess Goldman’s arguments in favour of the reliability of simulation for interpersonal comparisons. I argue that, under certain conditions, there may be room for a scientifically acceptable solution to the problem of interpersonal utility comparisons. (shrink)

Hausman has recently provided an argument against identifying well-being with preference-satisfaction. I will focus on two of his premises. Hausman’s arguments for the first, I will suggest, fail. If the third premise is correct, I shall then argue, it can be used to undermine other plausible conceptions of the good.

I consider an old problem for preference satisfaction theories of wellbeing: that they have trouble answering questions about interpersonal comparisons, such as whether I am better off than you are, or whether a particular policy benefits me more than it benefits you. I argue that a similar problem arises for intrapersonal comparisons in cases of transformative experience. I survey possible solutions to the problem, and point out some subtle disanalogies between the problem involving interpersonal comparisons and the problem (...) involving transformative experience. (shrink)

Utilitarianism, as well as many other political and moral doctrines, presupposes that the problem of interpersonal utility comparisons can be solved. Otto Neurath gave a comparatively early (1912) and explicit statement of this problem, and he suggested that it cannot be solved. This may still be the dominant view. It is argued that recent attempts to solve the problem (by e.g. Schick, Rescher, Harsanyi, Brandt, Jeffrey, Arrow, and Hare) are unsatisfactory, but that the oldest suggestion - i.e. the (...) method of minimal units or just-noticeable differences - is acceptable from the point of view of utilitarianism. (shrink)

Utilitarianism, as well as many other political and moral doctrines, presupposes that the problem of interpersonal utility comparisons can be solved. Otto Neurath gave a comparatively early (1912) and explicit statement of this problem, and he suggested that it cannot be solved. This may still be the dominant view. It is argued that recent attempts to solve the problem (by e.g. Schick, Rescher, Harsanyi, Brandt, Jeffrey, Arrow, and Hare) are unsatisfactory, but that the oldest suggestion - i.e. the (...) method of minimal units or just-noticeable differences - is acceptable from the point of view of utilitarianism. (shrink)

It is a commonplace that, in everyday life, we compare different people’s preferences with respect to content and strength. We typically make such comparisons with relatively little difficulty. Furthermore, we often do not find inter-personal comparisons of preferences more difficult than intra-personal comparisons, that is,comparisons involving our own preferences. This contrasts with the difficulties that comparing preferences across individuals pose at the theoretical level. Since preferences are typically represented numerically through a utility function, the problem is known as the (...) problem of interpersonal utility comparisons (IUCs for short). In this paper, I examine the most common solution to the problem of IUCs. According to it, we can assume that preferences are interpersonally comparable on pragmatic grounds (i.e. explanatory power, parsimony and simplicity) I argue that, contrary to our intuitions, the assumption of interpersonal comparability is not pragmatically advantageous. I conclude that this strategy to solve the problem of IUCs fails. (shrink)

In this article, I shall suggest an approach to the justification of normative moral principles which leads, I think, to utilitarianism. The approach is based on asking what moral norms we would each endorse if we had no prior moral commitments. I argue that we would endorse norms that lead to the satisfaction of all our nonmoral values or goals. The same approach leads to a view of utility as consisting of those goals that we would want satisfied. In (...) the second half of the article, I examine the implication of this view for several issues about the nature of utility, such as the use of past and future goals. The argument for utilitarianism is not completed here. The rest of it requires a defense of expected-utility theory, of interpersonal comparison, and of equal consideration. (shrink)

According to the orthodox view, it is impossible to know how different people's preferences compare in terms of strength and whether they are interpersonally comparable at all. Against the orthodox view, Donald Davidson (1986, 2004) argues that the interpersonal comparability of preferences is a necessary condition for the correct interpretation of other people's behaviour. In this paper I claim that, as originally stated, Davidson's argument does not succeed because it is vulnerable to several objections, including Barry Stroud's (1968) objection (...) against all transcendental arguments of a 'strong' kind. However, I argue that Davidson's strategy can still achieve results of anti-sceptical significance. If we reformulate Davidson's argument as a 'modest' transcendental argument and if we embrace an 'internal' account of epistemic justification, it is in fact possible to have at least justified beliefs about how different people's preferences compare in terms of strength and about their interpersonal comparability. (shrink)

The essays in this volume, first published in 1986, examine the philosophical foundations of social choice theory. This field, a modern and sophisticated outgrowth of welfare economics, is best known for a series of impossibility theorems, of which the first and most crucial was proved by Kenneth Arrow in 1950. That has often been taken to show the impossibility of democracy as a procedure for making collective decisions. However, this interpretation is challenged by several of the contributors here. Other central (...) issues discussed in the volume include the possibility of making interpersonal comparisons of utility, the question of whether all preferences are equally to be valued, and the normative individualism underlying the theoretical tradition. Criticisms of social choice theory are advanced and suggestions for alternative approaches are developed. (shrink)

In interactive situations, agents can “learn” something that is not a preexisting truth. They can converge to an arbitrary convention, or tacit agreement. Once established they may even view it as an objective truth. Here we investigate accommodation dynamics for interpersonal comparisons of utility intervals. We show, for a large class of dynamics, convergence to a convention.

This chapter of the Handbook of Utility Theory aims at covering the connections between utility theory and social ethics. The chapter first discusses the philosophical interpretations of utility functions, then explains how social choice theory uses them to represent interpersonal comparisons of welfare in either utilitarian or non-utilitarian representations of social preferences. The chapter also contains an extensive account of John Harsanyi's formal reconstruction of utilitarianism and its developments in the later literature, especially when society faces (...) uncertainty rather than probabilistic risk. (shrink)

I examine the once popular claim according to which interpersonal comparisons of welfare are necessary for social choice. I side with current social choice theorists in emphasizing that, on a narrow construal, this necessity claim is refuted beyond appeal. However, I depart from the opinion presently prevailing in social choice theory in highlighting that on a broader construal, this claim proves not only compatible with, but even comforted by, the current state of the field. I submit that all in (...) all, the most accurate philosophical assessment consists not in flatly rejecting this necessity claim, but in accepting it in a suitably revised form. (shrink)

The aim of this article is to show how research in cognitive science is relevant to a certain theoretical issue in moral theory, namely, the legitimacy of interpersonal utility (IU) comparisons.

The Oxford Handbook of Philosophy of Economics is a reference work on philosophical issues in the practice of economics. It is motivated by the view that there is more to economics than general equilibrium theory, and that the philosophy of economics should reflect the diversity of activities and topics that currently occupy economists. Contributions in the book are thus closely tied to on-going theoretical and empirical concerns in economics. Contributors include both philosophers of science and economists. Articles fall into three (...) general categories: received views in philosophy of economics, on-going controversies in microeconomics, and issues in modeling, macroeconomics, and development. Specific topics include methodology, game theory, experimental economics, behavioral economics, neuroeconomics, computational economics, data mining, interpersonal comparisons of utility, measurement of welfare and well-being, growth theory and development, and microfoundations of macroeconomics. (shrink)

In this volume a diverse group of economists, philosophers, political scientists, and psychologists address the problems, principles, and practices involved in comparing the well-being of different individuals. A series of questions lie at the heart of this investigation: What is the relevant concept of well-being for the purposes of comparison? How could the comparisons be carried out for policy purposes? How are such comparisons made now? How do the difficulties involved in these comparisons affect the status of utilitarian theories? (...) This collection constitutes the most advanced and comprehensive treatment of one of the cardinal issues in social theory. (shrink)

David Friedman posed a number of libertarian philosophical problems (Friedman 1989). This essay criticizes Walter Block’s Rothbardian responses (Block 2011) and compares them with J C Lester’s critical-rationalist, libertarian-theory responses (Lester [2000] 2012). The main issues are as follows. 1. Critical rationalism and how it applies to libertarianism. 2.1. How libertarianism is not inherently about law and is inherently about morals. 2.2. How liberty relates to property and can be maximized: carbon dioxide and radio waves. 2.3. Applying the theory to (...) flashlights. 2.4. Applying the theory to the probability of imposed risks. 2.5. “Homesteading” or initial acquisition. 2.6 What is “essential” for a “true libertarian.” 2.7. Crime and punishment. 2.8. Extent of punishment. 2.9. The libertarian response to a madman with a gun. 2.10. How contradictions in rights are possible. 2.11. The draft. 3.1. Utilitarian libertarianism and “nose counting”. 3.2. How interpersonal comparisons of utility are possible and utility monsters are not a threat. 3.3. Why it is not utilitarian in practice to kill an innocent prisoner to prevent a riot. 3.4. Why David Friedman should not be forced to give up one of his eyes. 3.5. How utilitarians can be libertarians. Conclusion: a proper theory of liberty combined with critical rationalism offers superior solutions to Friedman’s problems. Appendix: replies to two commentators. (shrink)

To evaluate the overall good/welfare of any action, policy or institutional choice we need some way of comparing the benefits and losses to those affected: we need to make interpersonal comparisons of the good/welfare. Yet sceptics have worried either: that such comparisons are impossible as they involve an impossible introspection across individuals, getting ‘into their minds’; that they are indeterminate as individual-level information is compatible with a range of welfare numbers; or that they are metaphysically mysterious as they assume (...) the existence either of a social mind or of absolute levels of welfare when no such things exist. This article argues that such scepticism can potentially be addressed if we view the problem of interpersonal comparisons as fundamentally an epistemic problem – that is, as a problem of forming justified beliefs about the overall good based on evidence of the individual good. (shrink)

In this volume a diverse group of economists, philosophers, political scientists, and psychologists address the problems, principles, and practices involved in comparing the well-being of different individuals. A series of questions lie at the heart of this investigation: What is the relevant concept of well-being for the purposes of comparison? How could the comparisons be carried out for policy purposes? How are such comparisons made now? How do the difficulties involved in these comparisons affect the status of utilitarian theories? (...) This collection constitutes the most advanced and comprehensive treatment of one of the cardinal issues in social theory. (shrink)

This paper is about the role of interpersonal comparisons in Harsanyi's aggregation theorem. Harsanyi interpreted his theorem to show that a broadly utilitarian theory of distribution must be true even if there are no interpersonal comparisons of well-being. How is this possible? The orthodox view is that it is not. Some argue that the interpersonal comparability of well-being is hidden in Harsanyi's premises. Others argue that it is a surprising conclusion of Harsanyi's theorem, which is not presupposed (...) by any one of the premises. I argue instead that Harsanyi was right: his theorem and its weighted-utilitarian conclusion do not require interpersonal comparisons of well-being. The key to making sense of this possibility is to treat Harsanyi's weights as dimensional constants rather than dimensionless numbers. (shrink)

The essays in this volume, first published in 1986, examine the philosophical foundations of social choice theory. This field, a modern and sophisticated outgrowth of welfare economics, is best known for a series of impossibility theorems, of which the first and most crucial was proved by Kenneth Arrow in 1950. That has often been taken to show the impossibility of democracy as a procedure for making collective decisions. However, this interpretation is challenged by several of the contributors here. Other central (...) issues discussed in the volume include the possibility of making interpersonal comparisons of utility, the question of whether all preferences are equally to be valued, and the normative individualism underlying the theoretical tradition. Criticisms of social choice theory are advanced and suggestions for alternative approaches are developed. (shrink)

An important objection to preference-satisfaction theories of well-being is that these theories cannot make sense of interpersonal comparisons of well-being. A tradition dating back to Harsanyi () attempts to respond to this objection by appeal to so-called extended preferences: very roughly, preferences over situations whose description includes agents’ preferences. This paper examines the prospects for defending the preference-satisfaction theory via this extended preferences program. We argue that making conceptual sense of extended preferences is less problematic than others have supposed, (...) but that even so extended preferences do not provide a promising way for the preference satisfaction theorist to make interpersonal well-being comparisons. Our main objection takes the form of a trilemma: depending on how the theory based on extended preferences is developed, either the result will be inconsistent with ordinary preference-satisfaction theory, or it will fail to recover sufficiently rich interpersonal well-being comparisons, or it will take on a number of other arguably odd and undesirable commitments. (shrink)

This article is a response to a call for a study of international criminal law as an economic phenomenon, going beyond addressing administrability, commensurability, and interpersonal comparison of utility, band instead focusing on problems of institutional choice. This approach differs from the typical methods of normative and descriptive scholarship of international criminal law. An institution like the International Criminal Court can be usefully examined as an international public good, and as such offering little incentives for states such (...) as the United States of America to join as they can enjoy benefits without costs. This article examines the economic basis for the US non-participation in the ICC and grapples with future prospectives. (shrink)

This paper is about the relevance, to the definition of freedom, of values or goods other than freedom. In this respect,its subject matter is not at all new. However, I do believe that new light can be thrown on the nature of this relationship by paying more attention to another relationship – one which exists within the concept of freedom itself. There are two senses in which we can be said to possess freedom. Firstly, there is the sense in which (...) we can be said to be free to do a certain particular thing. Secondly,there is the sense in which we can be said to possess a certain ‘amount’,‘degree’ or ‘quantity’ of freedom, in some overall sense. 1 I believe that most recent accounts of the relationship between freedom and other goods are inconsistent, because they see those other goods as affecting the truth value of claims about freedom in the second sense, but not in the first. (shrink)

ABSTRACT According to comparativism, comparative confidence is more fundamental than absolute confidence. In two recent AJP papers, Stefánsson has argued that comparativism is capable of explaining interpersonal confidence comparisons. In this paper, I will argue that Stefansson’s proposed explanation is inadequate; that we have good reasons to think that comparativism cannot handle interpersonal comparisons; and that the best explanation of interpersonal comparisons requires thinking about confidence in a fundamentally different way than that which comparativists propose: specifically, we (...) should think of confidence as a dimensionless quantity. (shrink)