EconStor Community: EFI - The Economic Research Institute, Stockholm School of Economics
http://hdl.handle.net/10419/56067
EFI - The Economic Research Institute, Stockholm School of Economics2017-09-23T06:00:10ZThe limit of discounted utilitarianism
http://hdl.handle.net/10419/122141
Title: The limit of discounted utilitarianism
Authors: Jonsson, Adam; Voorneveld, Mark
Abstract: This paper presents an infinite-horizon version of intergenerational utilitarianism that is both satisfactorily complete and consistent. By studying discounted utilitarianism as the discount factor tends to one, we obtain a welfare criterion - limit-discounted utilitarianism - that combines efficiency and the equal treatment of generations with analytical tractability and a high degree of comparability. We show that limit-discounted utilitarianism satisfies a number of consistency properties; in particular, it provides (i) an intuitive link between preferences over infinite-horizon streams and large, but finite-horizon truncations, and (ii) a complete view of the consequences of delaying streams with well-defined finite averages. The latter is formulated through a principle of compensation. Through this compensation principle, limit-discounted utilitarianism gives a coherent view on the consequences of delaying welfare which is compatible with stationarity. Limit-discounted utilitarianism is characterized on a large domain of infinite-horizon utility streams.2014-01-01T00:00:00ZRent seeking and organizational structure
http://hdl.handle.net/10419/122143
Title: Rent seeking and organizational structure
Authors: Wärneryd, Karl
Abstract: A hierarchically structured rent-seeking contest may be associated with lower equilibrium expenditure than a corresponding flat contest. In this chapter we discuss how this fact may be used to explain the structure of organizations such as firms, including why firms commonly have outside owners.2014-01-01T00:00:00ZUtilitarianism for infinite utility streams: Summable differences and finite averages
http://hdl.handle.net/10419/122145
Title: Utilitarianism for infinite utility streams: Summable differences and finite averages
Authors: Jonsson, Adam; Voorneveld, Mark
Abstract: This paper provides axiomatic descriptions of social welfare relations, defined on infinite streams of utility, that are consistent with the utilitarian criterion on subsets where maximizing aggregate utility has a clear interpretation: the streams, or their differences, are summable. Besides standard assumptions on efficiency, equity and interpersonal comparability, two axioms are introduced and shown to be necessary and sufficient. A more general version of one axiom suffices to distinguish streams with different long-run averages.2014-01-01T00:00:00ZConvergence of best response dynamics in extensive-form games
http://hdl.handle.net/10419/122144
Title: Convergence of best response dynamics in extensive-form games
Authors: Xu, Zibo
Abstract: We prove that, in all finite generic extensive-form games of perfect information, a continuous-time best response dynamic always converges to a Nash equilibrium component. We show the robustness of convergence by an approximate best response dynamic: whatever the initial state and an allowed approximate best response dynamic, the state is close to the set of Nash equilibria most of the time. In a perfect-information game where each player can only move at one node, we prove that all interior approximate best response dynamics converge to the backward induction equilibrium, which is hence the socially stable strategy in the game.2013-01-01T00:00:00Z