Skip to main content Accessibility help
×
Hostname: page-component-77c89778f8-vsgnj Total loading time: 0 Render date: 2024-07-17T13:37:57.067Z Has data issue: false hasContentIssue false

19 - Utility comparison and the theory of games

Published online by Cambridge University Press:  13 October 2009

Get access

Summary

1. Interpersonal comparability of utility is generally regarded as an unsound basis on which to erect theories of multipersonal behavior. Nevertheless, it enters naturally—and, I believe, properly—as a nonbasic, derivative concept playing an important if sometimes hidden role in the theories of bargaining, group decisionmaking, and social welfare. The formal and conceptual framework of game theory is well adapted for a broad and unified approach to this group of theories, though it tends to slight the psychological aspects of group interaction in favor of the structural aspects—e.g., complementary physical resources, the channels of information and control, the threats and other strategic options open to the participants, etc. In this note I shall discuss two related topics in which game theory becomes creatively involved with questions of interpersonal utility comparison.

The first topic concerns the nature of the utility functions that are admissible in a bargaining theory that satisfies certain minimal requirements. I shall show, by a simple argument, that while cardinal utilities are admissible, purely ordinal utilities are not. Some intriguing intermediate systems are not excluded. The argument does not depend on the injection of probabilities or uncertainty into the theory.

The second topic concerns a method of solving general n-person games by making use of the interpersonal comparisons of utility that are implicit in the solution.

Type
Chapter
Information
The Shapley Value
Essays in Honor of Lloyd S. Shapley
, pp. 307 - 320
Publisher: Cambridge University Press
Print publication year: 1988

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

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 Dropbox.

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.

Available formats
×