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Chapter 1 - Prologue

Published online by Cambridge University Press:  07 October 2011

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Summary

[T]he social order is a sacred right which serves as a foundation for all other rights. This right, however, since it comes not by nature, must have been built upon convention. To discover what these conventions are is the matter of our inquiry.

Jean-Jacques Rousseau

The problem of rule selection

In trying to lay the foundations of the new welfare economics, J. R. Hicks brought forward the following problem:

Although the economic system can be regarded as a mechanism for adjusting means to ends, the ends in question are ordinarily not a single system of ends, but as many independent systems as there are “individuals” in the community. This appears to introduce a hopeless arbitrariness into the testing of efficiency [of any given economic organization]. You cannot take a temperature when you have to use, not one thermometer, but an immense number of different thermometers, working on different principles, and with no necessary correlation between their registrations. How is this difficulty to be overcome?

[Hicks, 1939, p. 699]

According to Hicks, there are three possible ways of dealing with this problem:

  1. Instead of using the preference scales of the individuals in the community, the investigator may use his own “thermometer,” that is, decide for himself what is good or bad for society in judging the relative performances of the alternative economic organizations.

  2. The investigator may seek a method of aggregating the (possibly) conflicting reports of the various thermometers so as to construct an “average” or “social” registration.

  3. […]

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Publisher: Cambridge University Press
Print publication year: 1983

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  • Prologue
  • Kotaro Suzumura
  • Book: Rational Choice, Collective Decisions, and Social Welfare
  • Online publication: 07 October 2011
  • Chapter DOI: https://doi.org/10.1017/CBO9780511897993.002
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  • Prologue
  • Kotaro Suzumura
  • Book: Rational Choice, Collective Decisions, and Social Welfare
  • Online publication: 07 October 2011
  • Chapter DOI: https://doi.org/10.1017/CBO9780511897993.002
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Prologue
  • Kotaro Suzumura
  • Book: Rational Choice, Collective Decisions, and Social Welfare
  • Online publication: 07 October 2011
  • Chapter DOI: https://doi.org/10.1017/CBO9780511897993.002
Available formats
×