Grant, Simon; Kajii, Atsushi; Polak, Ben; Safra, Zvi Generalized utilitarianism and Harsanyi’s impartial observer theorem. (English) Zbl 1204.91050 Econometrica 78, No. 6, 1939-1971 (2010). Summary: Harsanyi’s impartial observer must consider two types of lotteries: imaginary identity lotteries (”accidents of birth”) that she faces as herself and the real outcome lotteries (”life chances”) to be faced by the individuals she imagines becoming. If we maintain a distinction between identity and outcome lotteries, then Harsanyi-like axioms yield generalized utilitarianism, and allow us to accommodate concerns about different individuals’ risk attitudes and concerns about fairness. Requiring an impartial observer to be indifferent as to which individual should face similar risks restricts her social welfare function, but still allows her to accommodate fairness. Requiring an impartial observer to be indifferent between identity and outcome lotteries, however, forces her to ignore both fairness and different risk attitudes, and yields a new axiomatization of Harsanyi’s utilitarianism. Cited in 13 Documents MSC: 91B14 Social choice 91A26 Rationality and learning in game theory 91B16 Utility theory Keywords:generalized utilitarianism; impartial observer; social welfare function; fairness; ex ante egalitarianism PDF BibTeX XML Cite \textit{S. Grant} et al., Econometrica 78, No. 6, 1939--1971 (2010; Zbl 1204.91050) Full Text: DOI