Despite decades of research, we still lack a clear explanation for the emergence and persistence of inequality. Here we propose and evaluate a marginal utility of inequality hypothesis that nominates circumscription and environmental heterogeneity as independent, necessary conditions for the emergence of intragroup material inequality. After coupling the Standard Cross-Cultural Sample with newly generated data from remote sensing, we test predictions derived from this hypothesis using a multivariate generalized additive model that accounts for spatial and historical dependence as (...) well as subsistence mode. Our analyses show that the probability a society will be stratified increases significantly as a function of proxies of environmental heterogeneity and environmental circumscription. This supports the hypothesis that increasing environmental heterogeneity and circumscription drives the emergence and persistence of inequality among documented societies across the globe. We demonstrate how environmental heterogeneity and circumscription produce situations that limit individuals’ options so that some may find it in their best interest to give up some autonomy for material gain, while others may find it in their best interest to give up some material resources for another individual’s time or deference. These results support the marginal utility of inequality framework and enable future explorations of the ecological conditions that facilitate the emergence of intragroup inequality through time and across the globe. (shrink)

[321] Over a year ago, with his essay “die klassische Werttheorie und die Theorie vom Grenznützen” [“The Classical Value Theory and the Theory of Marginal Utility ”],1 which appeared in this yearbook and in which he declared himself in favor of the rival, older value theory, which bases the value of goods on costs, Professor Dietzel inaugurated a polemic against the modern value theory of marginal utility. This attack was not an isolated case. Somewhat earlier it (...) had been started by the eminent Danish scholar Scharling in his essay, well-known to the readers of this yearbook, concerning “Werttheorien und Wertgesetze” [“Theories of Value and Laws of Value”].2 In Italy, A. Loria3 conducts it with an extraordinarily quarrelsome spirit. It is present even in France. Finally, it is right now carried on in America with particular interest and keen activity. The outbreak and the rapid spread of this controversy is not in the least surprising. It is the completely natural consequence of the scientific situation in which the theory of value presently finds itself. So long as the theory of. (shrink)

Volume 26, Issue 4, December 2019, Page 389-392.

Volume 26, Issue 4, December 2019, Page 380-384.

In this article, I firstly discuss why a prioritarian clause can rescue the utilitarian doctrine from the risk of exacerbating inequality in the distribution of resources in those cases in which utility of income does not decline at the margin. Nonetheless, when in the presence of adaptive preferences, classic prioritarianism is more likely than utilitarianism to increase the inequality of resources under all circumstances, independently of the diminishing trend of utility. Hence, I propose to shift the informational focus (...) of prioritarianism from welfare to either social income or capabilities in order to safeguard those who are worse off. Following this, I argue that we may have reasons to limit the aggregative logic of priority-amended utilitarianism through one or more sufficiency thresholds, and that we can partially defuse the negative-thesis objection that is usually levelled against sufficientarianism, provided we interpret the threshold(s) as valid only as long as everyone is led above it. (shrink)

There is a standard belief that the modern theory of marginal utility originated in the UK with Jevons, Germany with Gossen, Austria with Menger and France with Walras. In this new book, John Chipman introduces new English translations of important writings from German economists such as Rau, Hildebrand, Roscher and Knies showing that the introduction of this concept originated with them. This ground breaking book comes with a long introduction from John Chipman analysing the theory.

Abstract Twenty years ago, Tibor Scitovsky questioned the assumption, embedded in neoclassical economics, that human happiness will be augmented if the level of consumption either rises or becomes more uniform over time. Evidence from the 1990?1993 World Values Survey suggests that his doubts were well?founded: although economic gains apparently make a major contribution to subjective well?being as one moves from societies at the subsistence level to those with moderate levels of economic development, further economic growth seems to have little or (...) no impact on subjective well?being. This transition seems to reflect a basic cultural change that results in the diminishing marginal utility of economic growth. (shrink)

In late-nineteenth-century economics, there was an epoch-defining shift from the labour theory of value to the marginal utility theory of value. According to the latter, the economic value of some circumstance (obtaining some good, some service, and so on) is its subjective utility at the margin. Thus, while there is an absolute sense in which I prefer having water to having diamonds, at the present moment I value one more unit of diamonds more than I value one (...) more unit of water. That is why I am willing to pay a higher price for a bowl of diamonds than a bowl of water of the same size, even though water is ‘more valuable’ in a sense. While the marginalists resolved a large array of anomalies that had troubled the labour theory of value, they also believed that utility should be measurable if their theory was to be scientifically respectable. Taking this shift as his starting point, Ivan Moscati has provided a well-written, thorough, and insightful account of the history of utility measurement from 1870 to 1985. (shrink)

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 use of marginal land (ML) for lignocellulosic biofuel production is examined for system stability, resilience, and eco-social sustainability. A North American prairie grass system and its industrialization for maximum biomass production using biotechnology and agro-technical inputs is the focus of the analysis. Demographic models of ML biomass production and ethanol farmer/producers are used to examine the stability properties of the ML system. A bio-economic model that maximizes the utility of consumption having the dynamics of MLs and the (...) farmer/producers as dynamic constraints is used to examine the effects of increased conversion efficiency, input costs, risk, and levels of base resources and inputs on the competitive and societal solutions for biomass production. We posit ML abandonment after biofuel production ceases could lead to permanent land degradation below initial levels that prohibit the establishment of the original flora and fauna. (shrink)

By focusing on players’ relative contributions, we study some properties for values in positive cooperative games with transferable utilities. The well-known properties of symmetry (also known as “equal treatment of equals”) and marginality are based on players’ marginal contributions to coalitions. Both Myerson’s balanced contributions property and its generalization of the balanced cycle contributions property (Kamijo and Kongo Int J of Game Theory 39:563–571, 2010; BCC) are based on players’ marginal contributions to other players. We define relative versions (...) of marginality and BCC by replacing marginal contributions with relative contributions, and examine efficient values satisfying each of the two properties. On the class of positive games, a relative variation of marginality is incompatible with efficiency, and together with efficiency and the invariance property with respect to the payoffs of players under a player deletion, a relative variation of BCC characterizes the proportional value and egalitarian value in a unified manner. (shrink)

The COVID‐19 pandemic has raised important universal public health challenges. Conceiving ethical responses to these challenges is a public health imperative but must take context into account. This is particularly important in sub‐Saharan Africa (SSA). In this paper, we examine how some of the ethical recommendations offered so far in high‐income countries might appear from a SSA perspective. We also reflect on some of the key ethical challenges raised by the COVID‐19 pandemic in low‐income countries suffering from chronic shortages in (...) health care resources, and chronic high morbidity and mortality from non‐COVID‐19 causes. A parallel is drawn between the distribution of severity of COVID‐19 disease and the classic “Fortune at the bottom of the pyramid” model that is relevant in SSA. Focusing allocation of resources during COVID‐19 on the ‘thick’ part of the pyramid in Low‐to‐Middle Income Countries (LMICs) could be ethically justified on utilitarian and social justice grounds, since it prioritizes a large number of persons who have been economically and socially marginalized. During the pandemic, importing allocation frameworks focused on the apex of the pyramid from the global north may therefore not always be appropriate. In a post‐COVID‐19 world, we need to think strategically about how health care systems can be financed and structured to ensure broad access to adequate health care for all who need it. The root problems underlying health inequity, exposed by COVID‐19, must be addressed, not just to prepare for the next pandemic, but to care for people in resource poor settings in non‐pandemic times. (shrink)

Nozick (1977) was a critique of the view of Austrian economics which rejected the notion of indifference in human action. This author claimed that this stance was incompatible with the notion of the supply of a good, and, also, with diminishing marginal utility, both of which were strongly supported by this praxeological school of thought. Block (1980) was an attempt to rescue the Austrian school from this brilliant intellectual challenge. Hoppe (2005; 2009) rejected Nozick’s challenge, and, also, Block’s (...) (1980) response. Block (2009a) and Block and Barnett (2010), defended Block’s (1980) analysis of indifference. The latest contribution to this ongoing discussion is Wysocki (2021) who maintains that Hoppe was correct in his rejection of Nozick, while Block was not. The present paper is a rejoinder to Wysocki (2021). (shrink)

Background:The management of challenging behaviours in inpatient with intellectual disability and/or autism spectrum disorders can lead to an escalation of control measures. In these complex situations where patients have an intellectual disability/autism spectrum disorder accompanied by a psychiatric comorbidity, the experiences of caregivers related to the crisis management have rarely been studied.Purpose:This study examined the moral experiences of caregivers related to challenging behaviours’ management and alternatives to control measures.Research design:Using Charles Taylor’s hermeneutic framework, a 2-month focused ethnography with a participatory (...) approach was used.Participants and research context:Sixteen caregivers were interviewed in a Canadian mental health setting for adults with intellectual disability/autism spectrum disorder and psychiatric comorbidity.Ethical considerations:The research was conducted in compliance with the Declaration of Helsinki and local Research Ethics Board approval. Written informed consent was collected systematically from participants.Findings:By accounting for caregivers’ moral experiences, this study sheds light on a neglected dimension of the care relationship: the vulnerability of the caregiver. We highlight the main barriers and facilitators to alternatives to control measures. First, a caregiver’s vulnerability was characterised by the overall impact of challenging behaviours and the moral distress associated with the use of control measures and exclusion mechanisms of intellectual disability/autism spectrum disorder patients. Second, a strong ambiguity between care and control measures and a lack of inclusive approaches were identified as the two main barriers to challenging behaviour management. Third, the involvement, both professional and personal, of caregivers was deemed necessary to implement alternatives to control measures.Discussion:A conflict of values opposes two conceptions of autonomy: a rational autonomy, which is counterproductive to the reduction of control measures, versus a relational autonomy based on shared vulnerability.Conclusion:The recognition of caregiver’s vulnerability is a benchmark to create alternative approaches, which defuse the logic of control and promote an ethics of care within which caregivers’ self-concern can be understood as fostering mutual respect. (shrink)

This paper develops a new ascending-price multi-unit auction protocol that has following characteristics: it has an open format, sincere bidding is an equilibrium strategy even if the marginal utilities of each agent can increase and agents can submit false-name bids. False-name bids are bids submitted under fictitious names such as multiple e-mail addresses, which can be done easily in the Internet. This is the first protocol that has these two characteristics. We show that our new protocol outperforms an existing (...) protocol, which satisfies, with respect to the social surplus and the seller's revenue. (shrink)

Christian von Ehrenfels was a student of both Franz Brentano and Carl Menger and his thinking on value theory was inspired both by Brentano’s descriptive psychology and by the subjective theory of economic value advanced by Menger, the founder of the Austrian school of economics. Value, for Ehrenfels, is a function of desire, and we ascribe value to those things which we either do in fact desire, or would desire if we were not convinced of their existence. He asserts that (...) the needed theoretical understanding of values is to be achieved by generalizing economic laws of valuation to apply to value in general. The law of marginal utility, for example, is a law to the effect that the n+1st sample of a good which I receive is ceteris paribus less valuable than the nth sample (imagine that the samples in question are, for example, a series of identical ham sandwiches). The essay describes how Ehrenfels provides on this basis an account of the different types of values, both intrinsic and non-intrinsic. It outlines also Ehrenfels views on the problem of interpersonal value-comparisons and on the struggle for survival between different values of different types. (shrink)

This note examines the theory of optimal insurance purchasing in the presence of a nonpecuniary background risk. The occurrence of the qualitative uninsurable background loss can increase, decrease or can leave the marginal utility of wealth unchanged, whereas a financial background loss (as in Doherty and Schlesinger, 1883a) always increases it. Existing theorems on the optimal level of insurance and the optimal form of insurance contracts are shown to hold only under restrictive assumptions on the correlation level between (...) risks. The paper shows that sufficient conditions for the validity of the theorems depend not only on the correlation between the insurable and noninsurable losses, but also on the variation of the marginal utility of wealth with respect to the nonpecuniary variable. (shrink)

What value should we put on our chances of obtaining a good? This paper argues that, contrary to the widely accepted theory of von Neumann and Morgenstern, the value of a chance of some good G may be a nonlinear function of the value of G. In particular, chances may have diminishing marginal utility, a property that is termed chance uncertainty aversion. The hypothesis that agents are averse to uncertainy about chances explains a pattern of preferences often observed (...) in the Ellsberg paradox. While these preferences have typically been taken to refute Bayesian decision theory, it is shown that chance risk aversion is perfectly compatible with it. (shrink)

Perhaps the most salient feature of Rawls's theory of justice which at once attracts supporters and repels critics is its apparent egalitarian conclusion as to how economic goods are to be distributed. Indeed, many of Rawls's sympathizers may find this result intuitively appealing, and regard it as Rawls's enduring contribution to the topic of economic justice, despite technical deficiencies in Rawls's contractarian, decision-theoretic argument for it which occupy the bulk of the critical literature. Rawls himself, having proposed a “coherence” theory (...) of justification in metaethics, must regard the claim that his distributive criterion “is a strongly egalitarian conception” as independently a part of the overarching moral argument. The alleged egalitarian impact of Rawls's theory is crucial again in normative ethics where Rawls is thought to have developed a major counter-theory to utilitarianism, one of the most popular criticisms of which has been its alleged inadequacy in handling questions of distributive justice. Utilitarians can argue, however, as Brandt recently has, that the diminishing marginal utility of money, along with ignorance of income-welfare curves, would require a utility-maximizing distribution to be substantially egalitarian. The challenge is therefore for Rawls to show that his theory yields an ethically preferable degree of equality. (shrink)

Why, if at all, should we object to economic inequality? Some central arguments – the argument from decreasing marginal utility for example – invoke instrumental reasons and object to inequality because of its effects. Such instrumental arguments, however, often concern only the static effects of inequality and neglect its intertemporal consequences. In this article, we address this striking gap and investigate income inequality's intertemporal consequences, including its potential effects on humanity's (very) long-term future. Following recent arguments around future (...) generations and so-called longtermism, those effects might arguably matter more than inequality's short-term consequences. We assess whether we have instrumental reason to reduce economic inequality based on its intertemporal effects in the short, medium, and the very long term. We find a good short and medium-term instrumental case for lower economic inequality. We then argue, somewhat speculatively, that we have instrumental reasons for inequality reduction from a longtermist perspective too, primarily because greater inequality could increase existential risk. We thus have instrumental reasons to reduce inequality, regardless of which time-horizon we take. We then argue that from most consequentialist perspectives, this pro tanto reason also gives us all-things-considered reason. And even across most non-consequentialist views in philosophy, this argument gives us either an all-things-considered or at least weighty pro tanto reason against inequality. (shrink)

When discussing the general inertia in climate change mitigation, it is common to approach the analysis either in terms of epistemic obstacles (climate change is too scientifically complex to be fully understood by all in its dramatic nature and/or to find space in the media) and/or moral obstacles (the causal link between polluting actions and social damage is too loose, both geographically and temporally, to allow individuals to understand the consequences of their emissions). In this chapter I maintain that both (...) categories of obstacles now play a secondary role: many people have a clear understanding of the physical and social dynamics involved in climate change. The main reason why so few manage to reduce their ecological footprint is an ethical short-circuit that does not allow most people to reveal their “true” climate-related preferences in their daily choices. This short-circuit manifests itself in two phenomena that can be analysed through the lens of moral psychology. First, as the possibility of anticipated utility approaches, individuals further discount expected future utility and may even reverse their preferences (due to the so-called immediacy multiplier, in addition to the better known and discussed future utility discounting). Second, individuals struggle to order their preferences transitively when presented with the opportunity to obtain small net marginal utilities in the short run. The intertemporal and collective structure of the climate problem creates fertile ground for both phenomena, which means that even those who are sincerely convinced of the need to contribute to climate change mitigation end up trapped in loops of procrastination, both first and second level. If, however, we can understand the origin of these phenomena, then we will be able to devise counteracting solutions that will speed up individual mitigation efforts. I will therefore briefly propose three ethical/public strategies to break the procrastination loop: pre-commitment; increasing the costs of marginal postponements; reducing the disutility of action that is likely to be postponed. (shrink)

Despite the prevalence of the terms utilitarianism and utilitarian in the health care and health policy literature, anecdotal evidence suggests that authors are often not fully aware of the diversity of utilitarian theories, their principles, and implications. Further, it seems that authors often categorically reject utilitarianism under the assumption that it violates individual rights. The tendency of act utilitarianism to neglect individual rights is attenuated, however, by the diminishing marginal utility of wealth and the disutility of a protest (...) by those who are disadvantaged. In practice, act utilitarians tend to introduce moral rules and preserve traditional rules. At the same time, the tenability of rule utilitarianism is limited because it ultimately collapses into act utilitarianism or a deontological theory. Negative utilitarianism is a viable utilitarian variant only if we accept complete aversion to suffering, ie, if we disregard any forgone opportunities to increase pleasure. Finally, the adoption of preference utilitarianism requires us to accept the subjectivity of individual claims which may be perceived as unfair. (shrink)

I argue that the use of a social discount rate to assess the consequences of climate policy is unhelpful and misleading. I consider two lines of justification for discounting: (i) ethical arguments for a "pure rate of time preference" and (ii) economic arguments that take time as a proxy for economic growth and the diminishing marginal utility of consumption. In both cases I conclude that, given the long time horizons, distinctive uncertainties, and particular costs and benefits at stake (...) in the climate context, discount rates are at best a poor proxy for the normative considerations they are meant to represent. (shrink)

We study relationships between different aspects of risk preferences. We show that, under the assumptions of non-satiation and bounded marginal utility, some additional conditions on the asymptotic behaviour of the indices of relative prudence and relative temperance ensure that risk aversion, prudence and temperance are equivalent. Similar conclusions are derived for higher-degree risk aversion. Moreover, some links between indices of relative risk aversion of different degrees are derived. The implications of these results for several economic problems which involve (...) risk changes are discussed. (shrink)

U ovom članku autor razmatra osnovne inuticije za i protiv utilitarizma, prvenstveno probleme na koje utilitarizam nailazi u domeni distributivne pravednosti. Sukob intuicija razmatra se u idealiziranoj situaciji u kojoj dijelimo »manu s neba«, dakle, u situaciji u kojoj su po pretpostavci irelevantne zasluge, potrebe, vlasnički odnosi iz prošlosti, itd. Čak i u takvoj situaciji distribucija koju preferira utilitarizam izgleda problematična. Inuticije o jednakosti, prioritetu, apsolutno i relativno boljem položaju, marginalnoj korisnosti, itd. jake su i u situaciji u kojoj smo (...) apstrahirali od svih konkretnih okolnosti. Zanimljivo je da utilitarizam nije u svim mogućim situacijama u konfliktu s egalitarizmom; utilitarističke inuticije u konjunkciji s inuticijama o prioritetu i marginalnoj korisnosti zapravo daju egalitarističke posljedice.In this article the author examines basic intuitions for and aginst utilitarianism, primarily the problems that utilitarins face within the domain of distributive justice. The clash of intuitions is examined in the idealized situation in which we distribute “mana form haven”, that is, in a situation in which merits, needs, property relationships form the past, etc. are irrelevant by assumpition. Even in a such situation, distribution preffered by utilitarianism seems problematic. Inutitions about equality, priority, absolutely and relatively better position, marginal utility, etc. are strong even in the purely abstract situation. It is interesting that utilitarianism is not in conflict with egalitarianism in all possible situations; utilitarian inutitions in conjunction with intuitions about priority and marginal utility in fact have egalitarian consequences. (shrink)

The social discount rate typically consists of two components: differences in the marginal utility of consumption across time, and the pure time preference rate as applied to cardinal utility. Within this framework, intragenerational and intergenerational time preference rates must be the same, if we are to avoid strongly counterintuitive results. Both rates, however, can be plausibly equal at zero rather than at a positive level; pure time preference should not necessarily be applied to cardinal utility, even (...) when we apply it to goods. The other component of the discount rate, the marginal utility of consumption, is appropriate only for very small changes in individual wealth; this assumption does not match most of the intergenerational scenarios in question. I conclude that economics does not provide a prima facie case for a positive rate of intergenerational discount for most policy issues. (shrink)

Professor Roemer's goal in this book is to give a rigorous view of classical Marxian economic theory by presenting specific analytic models. The theory is not extended to deal with new problems, but it is deepened: Marxian theory is given micro-foundations and upon those foundations the author begins to rebuild a tightly constructed Marxian economics. The book begins, after a methodological introduction, with an examination of the Marxian notion of equilibrium and the theory of exploitation, and goes on to deal (...) with the theory of the falling rate of profit. The next section explores one of the points made in the first section of the book, that the Marxian theory of exploitation can be constructed completely independently of the labor theory of value as a theory of exchange. Technical study of this problem allows comment on various issues, such as the relative importance of 'marginal utilities' and 'class struggle' in determining relative prices. The final part examines models of various Marxian concepts. (shrink)

Why, if at all, should we object to economic inequality? Some central arguments – the argument from decreasing marginal utility for example – invoke instrumental reasons and object to inequality because of its effects. Such instrumental arguments, however, often concern only the static effects of inequality and neglect its intertemporal conse- quences. In this article, we address this striking gap and investigate income inequality’s intertemporal consequences, including its potential effects on humanity’s (very) long-term future. Following recent arguments around (...) future generations and so-called longtermism, those effects might arguably matter more than inequality’s short-term con- sequences. We assess whether we have instrumental reason to reduce economic inequality based on its intertemporal effects in the short, medium, and the very long term. We find a good short and medium-term instrumental case for lower economic inequality. We then argue, somewhat speculatively, that we have instrumental reasons for inequality reduction from a longtermist perspective too, primarily because greater inequality could increase existential risk. We thus have instrumental reasons to reduce inequality, regardless of which time-horizon we take. We then argue that from most consequentialist perspectives, this pro tanto reason also gives us all-things-considered reason. And even across most non-consequentialist views in philosophy, this argument gives us either an all-things-considered or at least weighty pro tanto reason against inequality. (shrink)

This article reveals one general scheme for creating counter examples to Bayesian confirmation theory. The reason of the problems is that: in daily life the degree of confirmation is affected not only by probability but also by some non-probabilistic factors, e.g., structural similarity, quantity of evidence, and marginal utility, while Bayesian confirmation theory considers only probabilities to measure the degree of confirmation. This article resolves these problems after some detail analyses, and proposes a new confirmation measure based on (...) these factors. (shrink)

Model predictive control technology can effectively reduce the bad effect caused by inaccurate data prediction in microgrid energy management problem. However, the use of MPC technology needs to dynamically select an optimal solution from the Pareto solution set to implement, which needs the participant of the decision-makers frequently. In order to reduce the burden on decision-makers, we designed a knee point-based evolutionary multiobjective optimization algorithm, termed KBEMO. Knee point is the solution on Pareto front with the maximum marginal (...) class='Hi'>utility, which is considered as the preferred solution if there is no other preference. This algorithm focuses on obtaining the knee region and automatically outputs knee points after the optimization. By combining this algorithm with MPC technology, it can effectively reduce the amount of computational consumption and obtain better convergence. Experimental results show that this method is more competitive than the traditional single-objective MPC method. (shrink)

Does the contemporary built environment—the ensemble of our humanly created surroundings—make us happy? This question prompts a consideration of the psychological dimensions of economic value, and of Tibor Scitovsky's revisions of standard economic theory. With Scitovsky as a starting point, a model of value based on modern complexity theory and a Maslow‐like rendition of human needs can account for some of the more important exceptions to the law of diminished marginal utility, including those that may undermine the built (...) environment in a market economy. (shrink)

In his featured article, Makins suggests that healthcare professionals ought to defer to patients’ higher-order attitudes towards their risk attitudes when making medical decisions under uncertainty.1 He contends that this deferential approach is consistent with widely held antipaternalistic views about medicine. While Makins offers novel, insightful and provocative perspectives, we illustrate in this commentary that the theory suffers from some weaknesses and shortcomings that limit its persuasiveness and applicability and professionals should take a cautious approach when applying it to their (...) healthcare practice. While Makins does not provide a clear and consistent definition of higher-order risk attitudes, in mathematics, higher-order attitudes should be defined by the sign and shape of the derivatives of the utility or value function beyond the second order. Prudence is defined by a positive third derivative (convex marginal utility), while temperance is defined by a negative fourth derivative (concave second derivative).2 It is worth noting that higher-order attitudes are domain-specific, context-dependent and situation-sensitive. They vary depending on the framing, wording, format or presentation of the choice problem, …. (shrink)