The Utilitarian Relevance of the Aggregation Theorem
American Economic Journal: Microeconomics, August 2016, Vol. 8, Issue 3, pp. 289-306
27 Pages Posted: 4 Nov 2015 Last revised: 7 Sep 2016
Date Written: September 3, 2015
Harsanyi invested his Aggregation Theorem and Impartial Observer Theorem with utilitarian sense, but Sen described them as "representation theorems" with little ethical import. This critical view has never been subjected to full analytical scrutinity. The formal argument we provide here supports the utilitarian relevance of the Aggregation Theorem. Following a hint made by Sen himself, we posit an exogeneous utilitarian ordering that evaluates riskless options by the sum of individual utilities and we show that any social observer who obeys the conditions of the Aggregation Theorem evaluates social states in terms of a weighted variant of this utilitarian sum.
Keywords: Utilitarianism, Aggregation Theorem, Impartial Observer Theorem, Cardinal utility, VNM utility, Harsanyi, Sen
JEL Classification: D63, D71, D81
Suggested Citation: Suggested Citation