Rational Choice and Social Welfare: Theory and Applications Essays in Honor of Kotaro Suzumura PDF
Preview Rational Choice and Social Welfare: Theory and Applications Essays in Honor of Kotaro Suzumura
Studies in Choice and Welfare Editor-in-Chief M.Salles,France SeriesEditors P.K.Pattanaik,USA K.Suzumura,Japan KotaroSuzumura Prasanta K. Pattanaik Koichi Tadenuma • Yongsheng Xu Naoki Yoshihara • Editors Rational Choice and Social Welfare Theory and Applications Essays in Honor of Kotaro Suzumura (cid:65)(cid:66)(cid:67) Editors ProfessorPrasantaK.Pattanaik ProfessorKoichiTadenuma DepartmentofEconomics DepartmentofEconomics UniversityofCalifornia HitotsubashiUniversity Riverside 2-1Naka,Kunitachi CA,92521 Tokyo186-8601 U.S.A Japan [email protected] [email protected] ProfessorYongshengXu ProfessorNaokiYoshihara DepartmentofEconomics InstituteofEconomicResearch AndrewYoungSchoolofPolicyStudies HitotsubashiUniversity GeorgiaStateUniversity 2-1Naka,Kunitachi P.O.Box3992 Tokyo186-8603 Atlanta,GA30302-3992 Japan U.S.A. [email protected] [email protected] ISBN978-3-540-79831-6 ISBN978-3-540-79832-3 (eBook) StudiesinChoiceandWelfareISSN1614-0311 LibraryofCongressControlNumber:2008931049 (cid:176)c Springer-VerlagBerlinHeidelberg2008 Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,broadcasting, reproductiononmicrofilmorinanyotherway,andstorageindatabanks.Duplicationofthispublication orpartsthereofispermittedonlyundertheprovisionsoftheGermanCopyrightLawofSeptember9, 1965,initscurrentversion,andpermissionforusemustalwaysbeobtainedfromSpringer.Violationsare liabletoprosecutionundertheGermanCopyrightLaw. Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.inthispublicationdoesnotimply, evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevantprotectivelaws andregulationsandthereforefreeforgeneraluse. Coverdesign:WMXDesignGmbH,Heidelberg Printedonacid-freepaper 9 8 7 6 5 4 3 2 1 springer.com Preface Thisvolumebringstogetherpapers,whichwerefirstpresentedattheInternational Conference on Rational Choice, Individual Rights and Non-Welfaristic Normative Economics,heldinhonourofKotaroSuzumuraatHitotsubashiUniversity,Tokyo, on11–13March2006,andwhichhavesubsequentlygonethroughtheusualprocess ofreviewbyreferees.Wehavebeenhelpedbymanyindividualsandinstitutionsin organizing theconference and puttingthisvolume together. Wearegrateful tothe authorsofthisvolumeforcontributingtheirpapersandtotherefereeswhoreviewed thepapers.WegratefullyacknowledgetheverygenerousfundingsbytheMinistry ofEducation,Culture,Sports,ScienceandTechnology,Japan,throughthegrantfor the21stCenturyCenterofExcellence(COE)ProgramontheNormativeEvaluation and Social Choice of Contemporary Economic Systems, and by the Japan Society forthePromotionofScience,throughthegrantforInternationalScientificMeetings in Japan, and the unstinted effort of the staff of the COE Program at Hitotsubashi University,withoutwhichtheconferencein2006wouldnothavebeenpossible.We thankDr.MartinaBihn,theEditorialDirectorofSpringer-Verlagforeconomicsand business,forheradviceandhelp. Finally,wewouldliketomentionthatithasbeenagreatpleasureandprivilege forustoeditthisvolume,whichisintendedtobeatributetoKotaroSuzumura’sim- menseintellectualcontributions,especiallyinthetheoryofrationalchoice,welfare economics,andthetheoryofsocialchoice. Riverside PrasantaK.Pattanaik Tokyo KoichiTadenuma Atlanta YongshengXu Tokyo NaokiYoshihara 2007 v Professor Kotaro Suzumura Bibliographical Data BooksinEnglish RationalChoice,CollectiveDecisionsandSocialWelfare,CambridgeUniversityPress,1983. IndustrialPoliciesforPacificEconomicGrowth,GeorgeAllenandUnwin,1986.Jointeditorwith H.Mutoh,S.Sekiguchi,andI.Yamazawa. IndustrialPolicyofJapan,AcademicPress,1988.JointeditorwithR.KomiyaandM.Okuno. The Economic Theory of Industrial Policy, Academic Press, 1991. Joint author with M. Itoh, K.Kiyono,andM.Okuno-Fujiwara. Choice,Welfare,andDevelopment:AFestschriftinHonorofAmartyaK.Sen,OxfordUniversity Press,1995.JointeditorwithK.BasuandP.K.Pattanaik. Competition,Commitment,andWelfare,OxfordUniversityPress,1995. Social Choice Re-examined, Macmillan, 2 vols., 1996/1997. Joint editor with K. J. Arrow and A.K.Sen. DevelopmentStrategyandManagementoftheMarketEconomy,OxfordUniversityPress,1997. JointauthorwithE.Malinvaud,J.-C.Milleron,M.Nabli,A.K.Sen,A.Sengupta,N.Stern, andJ.E.Stiglitz. HandbookofSocialChoiceandWelfare,Elsevier,2vols.,1stvol.,2002;2ndvol.,forthcomingin 2008.JointeditorwithK.J.ArrowandA.K.Sen. IntergenerationalEquityandSustainability,Elsevier,2007.JointeditorwithJ.Roemer. Choice, Opportunities, and Procedures: Selected Papers on Social Choice and Welfare, Basil Blackwell,forthcomingin2008. ArticlesinEnglish “BalancedGrowthPropertiesofGeneralizedDynamicLeontiefModel,”EconomicStudiesQuar- terly,Vol.20,1969,pp.64–74.JointpaperwithS.Nabeya. “PriceDivergenceandGainsfromTradeinLeontiefModelwithVariableCoefficients,”Economic StudiesQuarterly,Vol.21,1970,pp.60–66. “InternationalEqualizationofFactorPricesinLeontiefModelwithVariableCoefficients,”Metroe- conomica,Vol.23,1971,pp.1–15. “UniquenessoftheCournotOligopolyEquilibrium,”EconomicStudiesQuarterly,Vol.22,1971, pp.81–83.JointpaperwithK.Okuguchi. “TheEconomicTheoryofOrganizationandPlanning:AReviewArticle,”EconomicStudiesQuar- terly,Vol.24,1973,pp.33–51. “ProfessorUzawa’sEquivalenceTheorem,”EconomicStudiesQuarterly,Vol.24,1973,pp.60–70. vii viii BibliographicalData “BoundednessoftheClosedEconomywithSamuelson-LeontiefTechnology,”HitotsubashiJour- nalofEconomics,Vol.13,1973,pp.43–46. “OnAcyclicPreferences,”EconomicReview,Vol.26,1975,pp.273–275. “Rational Choice and Revealed Preference,” Review of Economic Studies, Vol. 43, 1976, pp.149–158. “RemarksontheTheoryofCollectiveChoice,”Economica,Vol.43,1976,pp.381–390. “ImpossibilityTheoremswithoutCollectiveRationality,”JournalofEconomicTheory,Vol.13, 1976, pp. 361–379. Joint paper with D. H. Blair, G. Bordes, and J. S. Kelly. Reprinted in K.J.ArrowandG.Debreu,eds.,TheFoundationsof20thCenturyEconomics,Vol.3,Land- markPapersinGeneralEquilibriumTheory,SocialChoice,andWelfare,Cheltenham,Glos.: EdwardElgar,2001,pp.660–678. “Houthakker’sAxiomintheTheoryofRationalChoice,”JournalofEconomicTheory,Vol.14, 1977,pp.284–290. “OntheConsistencyofLibertarianClaims,”ReviewofEconomicStudies,Vol.45,1978,pp.329– 342.“ACorrection,”ReviewofEconomicStudies,Vol.46,1979,p.743. “OnDistributionalValueJudgmentsandPiecemealWelfareCriteria,”Economica,Vol.47,1980, pp.125–139. “LiberalParadoxandtheVoluntaryExchangeofRights-Exercising,”JournalofEconomicTheory, Vol.22,1980,pp.407–422.ReprintedinC.K.Rowley,ed.,TheInternationalLibraryofCrit- icalWritingsinEconomics,Vol.27,SocialJusticeandClassicalLiberalGoals,Cheltenham, Glos.:EdwardElgar,1993,pp.483–498. “On the Possibility of ‘Fair’ Collective Choice Rule,” International Economic Review, Vol. 22, 1981,pp.307–320. “OnPareto-EfficiencyandtheNo-EnvyConceptofEquity,”JournalofEconomicTheory,Vol.25, 1981,pp.367–379. “CollectiveChoiceRuleswithouttheParetoPrinciple,”InternationalEconomicReview,Vol.23, 1982,pp.299–308.JointpaperwithJ.Fountain. “Equity, Efficiency and Rights in Social Choice,” Mathematical Social Sciences, Vol. 3, 1982, pp.131–155. “ResolvingConflictingViewsofJusticeinSocialChoice,”inP.K.PattanaikandM.Salles,eds., SocialChoiceandWelfare,Amsterdam:North-Holland,1983,pp.125–149. “Perron-FrobeniusTheoremonNon-NegativeSquareMatrices:AnElementaryProof,”Hitotsub- ashiJournalofEconomics,Vol.24,1983,pp.137–141. “EquityandEfficiencyinthePublicGoodsEconomy:SomeCounterexamples,”HitotsubashiJour- nalofEconomics,Vol.26,1985,pp.59–82.JointpaperwithK.Sato. “GibbardianLibertarianClaimsRevisited,”SocialChoiceandWelfare,Vol.3,1986,pp.61–74. JointpaperwithK.Suga. “AnEconomicAnalysisofIndustrialPolicy:AConceptualFrameworkThroughtheJapaneseEx- perience,”inH.Mutoh,S.Sekiguchi,K.Suzumura,andI.Yamazawa,eds.,IndustrialPolicies for Pacific Economic Growth, George Allen and Unwin, 1986, pp. 23–41. Joint paper with M.Okuno. “EntryBarriersandEconomicWelfare,”ReviewofEconomicStudies,Vol.54,1987,pp.157–167. JointpaperwithK.Kiyono. “ArrowandtheProblemofSocialChoice,”inG.Feiwel,ed.,ArrowandtheFoundationsofthe TheoryofEconomicPolicy,Macmillan,1987,pp.255–271.JointpaperwithK.Suga. “Industrial Policy in Japan: Overview and Evaluation,” in R. Sato and P. Wachtel, eds., Trade FrictionandEconomicPolicy,CambridgeUniversityPress,1987,pp.50–79.Jointpaperwith M.Okuno-Fujiwara. “SocialWelfareFunction,”inJ.Eatwell,M.Milgate,andP.Newman,eds.,TheNewPalgrave:A DictionaryofEconomics,Vol.4,London:Macmillan,1987,pp.418–420. “ReductionofSocialChoiceProblems:ASimpleProofofArrow’sGeneralPossibilityTheorem,” HitotsubashiJournalofEconomics,Vol.29,1988,pp.219–221. “StrategicInformationRevelation,”ReviewofEconomicStudies,Vol.57,1990,pp.25–47.Joint paperwithM.Okuno-FujiwaraandA.Postlewaite. BibliographicalData ix “OligopolisticCompetitionandEconomicWelfare:AGeneralEquilibriumAnalysisofEntryReg- ulationandTax-SubsidySchemes,”JournalofPublicEconomics,Vol.42,1990,pp.67–88. JointpaperwithH.KonishiandM.Okuno-Fujiwara. “DictatorLemma:DetailedProof,”HitotsubashiJournalofEconomics,Vol.31,1990,pp.35–36. “EndogenousPreferences:ThroughtheLooking-GlassofSocialChoiceTheory,”inG.Brennan andC.Walsh,eds.,Rationality,IndividualismandPublicPolicy,CenterforResearchonFed- eralFinancialRelations,1990,pp.34–39. “AlternativeApproachestoLibertarianRightsintheTheoryofSocialChoice,”inK.J.Arrow,ed., IssuesinContemporaryEconomics,Vol.1,MarketsandWelfare,London:Macmillan,1990, pp.215–242. “On the Voluntary Exchange of Libertarian Rights,” Social Choice and Welfare, Vol. 8, 1991, pp.199–206. “Alternative Firm Objectives and the Welfare Effects of Entry,” Osaka Economic Papers: Spe- cial Issue in Honor of Professor H. Shibata, Vol. 40, 1991, pp. 194–198. Reprinted in AliM.El-Agraa,ed.,PublicandInternationalEconomics,London:Macmillan,1993. “Individual Rights Revisited,” Economica, Vol. 59, 1992, pp. 161–177. Joint paper with W.Gaertner and P. K. Pattanaik. Reprinted in C. K. Rowley, ed., The International Library ofCriticalWritingsinEconomics,Vol.27,SocialJusticeandClassicalLiberalGoals,Chel- tenham,Glos.:EdwardElgar,1993,pp.592–608. “TaxationandWelfareinOligopolywithStrategicCommitment,”InternationalEconomicReview, Vol.33,1992,pp.413–431.JointpaperwithT.Besley. “CooperativeandNoncooperativeR&DinOligopolywithSpillovers,”AmericanEconomicRe- view,Vol.82.1992,pp.1307–1320. “SymmetricCournotOligopolyandEconomicWelfare:ASynthesis,”EconomicTheory,Vol.3, 1993,pp.43–59.JointpaperwithM.Okuno-Fujiwara. “Cooperative and Non-Cooperative R&D in an Oligopoly with Spillovers: Strategic Substitutes VersusStrategicComplements,”HitotsubashiJournalofEconomics,Vol.34,1993,pp.1–11. JointpaperwithN.Yanagawa. “Rights, Welfarism and Social Choice,” American Economic Review: Papers and Proceedings, Vol.84,1994,pp.435–439.JointpaperwithP.K.Pattanaik. “Industrial Policy of Japan: Whither Now?” in C. Filippini, ed., The Italian and Japanese Economiesinthe’80s,Milano:SGEA,1994,pp.64–95. “On Symmetric Agents: Comments on Kemp and Shimomura,” Japanese Economic Review, Vol.46,1995,pp.295–298.JointcommentwithM.Kaneko. “Further Comments,” Japanese Economic Review, Vol. 46, 1995, p. 300. Joint comment with M.Kaneko. “EntryandCostReduction:Comment,”JapanandtheWorldEconomy,Vol.7,1995,pp.411–418. “IndividualRightsandSocialEvaluation:AConceptualFramework,”OxfordEconomicPapers, Vol.48,1996,pp.194–212.JointpaperwithP.K.Pattanaik. “Welfare,RightsandSocialChoiceProcedure:APerspective,”Analyse&Kritik,Vol.18,1996, pp.20–37. “OntheSocialResponsibilityofCorporationsunderCompetition,”inB.F.Neil,ed.,EthicalUni- versalsandInternationalBusiness,Berlin:SpringerVerlag,1996,pp.40–57. “OligopolisticCompetitionandEconomicWelfare:TheEffectsofOwnershipStructure,”inR.Sato, R.Ramachandran,andH.Hori,eds.,Organization,PerformanceandEquity:Perspectivesin theJapaneseEconomy,Hingham:MartinusNijhoffPublishing,1996,pp.93–107. “VoluntaryExportRestraintsandEconomicWelfare,”JapaneseEconomicReview,Vol.48,1997, pp.176–186.JointpaperwithJ.Ishikawa. “Japan’sIndustrialPolicyandAccessiontotheGATT:ATeacherbyPositiveorNegativeExam- ples?”HitotsubashiJournalofEconomics,Vol.38,1997,pp.101–123. “Collaborative R&D and Competition Policy: Economic Analysis in the Light of Japanese Ex- perience,”inW.Comanor,A.GotoandL.Waverman,eds.,CompetitionPolicyinaGlobal Economy:ModalitiesforCo-operation,London:Routledge&KeganPaul,1997,pp.197–223. JointpaperwithA.Goto. x BibliographicalData “Keiretsu–Inter-FirmRelationshipinJapan”inW.Comanor,A.GotoandL.Waverman,eds., CompetitionPolicyinaGlobalEconomy:ModalitiesforCo-operation,London:Routledge& KeganPaul,1997,pp.361–378.JointpaperwithA.Goto. “InterpersonalComparisonsoftheExtendedSympathyTypeandthePossibilityofSocialChoice,” inK.J.Arrow,A.K.SenandK.Suzumura,eds.,SocialChoiceRe-examined,Vol.2,London: Macmillan,1997,pp.200–227. “Japan’sIndustrialPolicyforTelecommunications:The1985InstitutionalReformanditsAfter- math,”inK.OdakaandJ.Teranishi,eds.,MarketsandGovernment:InSearchofBetterCoor- dination,Tokyo:KinokuniyaPublishingCo.,1998,pp.263–303. “Consequences, Opportunities and Procedures,” Social Choice and Welfare, Vol. 16, 1999, pp.17–40. “ParetianWelfareJudgmentsandBergsonianSocialChoice.”EconomicJournal,Vol.109,1999, pp.204–220.ReprintedinG.C.WoodandM.McLure,eds.,PaulSamuelson:CriticalAssess- mentofContemporaryEconomists,Vol.2,2ndSeries,London:Routledge,2004,pp.378–396. “WelfareEconomicsandtheWelfareState,”ReviewofPopulationandSocialPolicy,No.8,1999, pp.119–138. “Consequentialism and Procedural Evaluations in Social Welfare Judgments,” in R. Sato, R. V. Ramachandran,andK.Mino,eds.,GlobalCompetitionandIntegration,Boston:KluwerAca- demicPublishers,1999,pp.65–81. “Commentson‘RegulatoryPrioritiesforInfrastructureReforminDevelopingCountries,’byP.L. Joskow,”inB.PleskovicandJ.E.Stiglitz,eds.,AnnualWorldBankConferenceonDevelop- mentEconomics1998,Washington,D.C.:TheWorldBank,1999,pp.228–232. “WelfareEconomicsBeyondWelfarist-Consequentialism,”JapaneseEconomicReview,Vol.51, 2000,pp.1–32. “Competitionand RegulationinTelecommunications:Japan’s Reform ExperienceSince1985,” HitotsubashiJournalofEconomics,Vol.40,2000,pp.1–28.JointpaperwithY.Yasaki. “On the Rule-Oriented Approach to Fair Trade,” Journal of Japanese Trade and Industry, July/August2000,pp.26–29. “ParetoPrinciplesfromInchtoEll,”EconomicsLetters,Vol.70,2001,pp.95–98. “AnInterviewwithMiyoheiShinohara:NonconformisminJapaneseEconomicThought,”Journal oftheJapaneseandInternational Economies,Vol.15, 2001,pp. 341–360. Jointpaperwith A.Amsden. “CharacterizationsofConsequentialismandNon-Consequentialism,”JournalofEconomicThe- ory,Vol.101,2001,pp.423–436.JointpaperwithY.Xu. “Upper Semicontinuous Extensions of Binary Relations,” Journal of Mathematical Economics, Vol.37,2002,pp.231–246.JointpaperwithW.BossertandY.Sprumont. “RecoverabilityofChoiceFunctionsandBinaryRelations:SomeDualityResults,”SocialChoice andWelfare,Vol.21,2003,pp.21–37.JointpaperwithY.Xu. “OnConstrainedDualRecoverabilityTheorems,”MathematicalSocialSciences,Vol.45,2003, pp.143–154.JointpaperwithY.Xu. “Consequences, Opportunities, and Generalized Consequentialism and Non-Consequentialism,” JournalofEconomicTheory,Vol.111,2003,pp.293–304.JointpaperwithY.Xu. “Welfarist-Consequentialism, Similarity of Attitudes, and Arrow’s General Impossibility Theo- rem,”SocialChoiceandWelfare,Vol.22,2004,pp.237–251.JointpaperwithY.Xu. “ExtendedSocialOrderingFunctionsforRationalizingFairAllocationRulesasGameFormsinthe SenseofRawlsandSen,”InternationalJournalofEconomicTheory,Vol.1,2005,pp.21–41. JointpaperwithR.GotohandN.Yoshihara. “ConsistentRationalizability,”Economica,Vol.72,2005,pp.185–200.JointpaperwithW.Bossert andY.Sprumont. “Arrovian Aggregation in Economic Environments: How Much Should We Know About Indif- ferenceSurfaces?”JournalofEconomicTheory,Vol.124,2005,pp.22–44.Jointpaperwith M.FleurbaeyandK.Tadenuma. “TheInformationalBasisoftheTheoryofFairAllocation,”SocialChoiceandWelfare,Vol.24, 2005,pp.311–341.JointpaperwithM.FleurbaeyandK.Tadenuma. BibliographicalData xi “Maximal-ElementRationalizability,”TheoryandDecision,Vol.58,2005,pp.325–350.Jointpa- perwithW.BossertandY.Sprumont. “An Interview with Paul Samuelson: Welfare Economics, ‘Old’ and ‘New’, and Social Choice Theory,”SocialChoiceandWelfare,Vol.25,2005,pp.327–356. “Competition,Welfare,andCompetitionPolicy,”inU.SchmidtandS.Traub,eds.,Advancesin PublicEconomics:Utility,ChoiceandWelfare,Netherlands:Springer,2005,pp.1–15. “Rationalizability of Choice Functions on General Domains Without Full Transitivity,” Social ChoiceandWelfare,Vol.27,2006,pp.435–458.JointpaperwithW.BossertandY.Sprumont. “ShigetoTsuru(1912–2006):Life,WorkandLegacy,”EuropeanJournaloftheHistoryofEco- nomicThought,Vol.13,2006,pp.613–620. “Competition,RegulationandWelfareinthePresenceofNetworkExternalities,”JapaneseEco- nomicReview,Vol.58,2007,pp.47–70.JointpaperwithA.SoubeyranandS.Weber. “OrderingInfiniteUtilityStreams,”JournalofEconomicTheory,Vol.135,2007,pp.579–589. JointpaperwithW.BossertandY.Sprumont. “Domain Closedness Conditions and Rational Choice,” Order, Vol. 24, 2007, pp. 75–88. Joint paperwithW.Bossert. “Non-Deteriorating Choice Without Full Transitivity,” Analyse & Kritik, Vol. 29, 2007, pp.163–187.JointpaperwithW.Bossert. “ACharacterizationofConsistentCollectiveChoiceRules,”JournalofEconomicTheory,Vol.138, 2008,pp.311–320.JointpaperwithW.Bossert. “ContinuityandEgalitarianismintheEvaluationofInfiniteUtilityStreams,”SocialChoiceand Welfare,Vol.31,2008,179–191.JointpaperwithC.Hara,T.Shinotsuka,andY.Xu. “RationalChoiceonGeneralDomains”,inK.BasuandR.Kanbur,eds.,ArgumentsforaBetter World: Essays in Honor of Amartya Sen, Vol. I: Ethics, Welfare and Measurement, Oxford: OxfordUniversityPress,forthcoming.JointpaperwithW.Bossert. “ConsequentialismandNon-Consequentialism:AxiomaticApproach,”inC.Puppe,P.Anandand P.K.Pattanaik,eds.,HandbookofDecisionTheoryandSocialChoice,Oxford:OxfordUni- versityPress,forthcoming.JointpaperwithY.Xu.
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