Alternative derivation of the leximin principle. (English) Zbl 1295.91045

Mori, Osamu

Econ. Lett. 124, No. 1, 157-159 (2014).

Summary: This note provides an alternative derivation of the leximin principle using the framework of J. C. Harsanyi’s equi-probability model [“Cardinal utility in welfare economics and in the theory of risk-taking”, J. Polit. Econ. 61, 434–435 (1953; doi:10.1086/257416)]. We demonstrate that the leximin principle is concluded if and only if the preference ordering of the impartial observer obeys strong monotonicity and complete risk aversion.

MSC:

91B15	Welfare economics
91B14	Social choice
91B16	Utility theory

Keywords:

leximin; observer; lottery; risk aversion

References:

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