Ethically robust comparisons of bidimensional distributions with an ordinal attribute

Patrick Moyes (1) , Nicolas Gravel

1 GREThA - Groupe de Recherche en Economie Théorique et Appliquée

We provide foundations for robust normative evaluation of distributions of two attributes, one of which is cardinally measurable and transferable between individuals and the other is ordinal and non-transferable. The result that we establish takes the form of an analogue to the standard Hardy-Littlewood-Polya theorem for distributions of one cardinal attribute. More specifically, we identify the transformations of the distributions which guarantee that social welfare increases according to utilitarian unanimity provided that the utility function is concave in the cardinal attribute and that its marginal utility with respect to the same attribute is non-increasing in the ordinal attribute. We establish that this unanimity ranking of the distributions is equivalent to the ordered poverty gap quasi-ordering introduced by Bourguignon [12]. Finally, we show that, if one distribution dominates another according to the ordered poverty gap criterion, then the former can be derived from the latter by means of an appropriate and finite sequence of such transformations.

Domaines: Economies et finances

Patrick Moyes, Nicolas Gravel. Ethically robust comparisons of bidimensional distributions with an ordinal attribute. Journal of Economic Theory, 2012, 147 (4), pp.1384-1426. ⟨10.1016/j.jet.2012.01.001⟩. ⟨hal-00796050⟩