Interpersonal comparison of welfare in Harsanyi’s veilof- ignorance model
Keywords:
Interpersonal comparison, John Harsanyi, veil of ignorance, welfareAbstract
According to John Harsanyi’s veil-of-ignorance model (1953, 1955) rational observers behind a veil of ignorance seek to maximize the sum of individual utilities. However, Harsanyi’s model is based on the erroneous assumption that the observers’ von Neumann-Morgenstern utility function allows comparing welfare interpersonally. This paper suggests a modification of Harsanyi’s model that allows comparing welfare interpersonally, by using life years in perfect utility or happy life years as a measure of welfare.
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