American Economic Review Papers and Proceedings, 103(3): 605-610
11 Pages Posted: 26 Jan 2013 Last revised: 22 Sep 2013
Date Written: January 25, 2013
We propose a social choice rule for aggregating preferences elicited from surveys into a marginal adjustment of policy from the status quo. The mechanism is: (i) symmetric in its treatment of survey respondents; (ii) ordinal, using only the orientation of respondents’ indifference surfaces; (iii) local, using only preferences in the neighborhood of current policy; and (iv) what we call “first-order strategy-proof,” making the gains from misreporting preferences second order. The mechanism could be applied to guide policy based on how policy affects responses to subjective well-being surveys.
Keywords: subjective well-being, happiness, life satisfaction, aggregation, policy
JEL Classification: D69, H0, I38
Suggested Citation: Suggested Citation
Benjamin, Daniel J. and Heffetz, Ori and Kimball, Miles S. and Szembrot, Nichole, Aggregating Local Preferences to Guide Marginal Policy Adjustments (January 25, 2013). American Economic Review Papers and Proceedings, 103(3): 605-610; Johnson School Research Paper Series No. 1-2013. Available at SSRN: https://ssrn.com/abstract=2206908