Ittay Nissan-Rozen

It is well known that there is a conflict between three intuitive principles for the evaluation of risky prospects in distributional contexts, Ex-Post Egalitarianism, Ex-Ante Pareto and Dominance. In this paper, I return to Peter Diamond’s suggestion that we reject Dominance as a principle of rationality in distributional contexts and present a new argument in support of this position. The argument is based on an observation regarding the right way for a distributor to weigh reasons for actions. In some cases, I argue, reasons for action that are grounded in the interests of one of the patients ought to be disregarded by the distributor. These cases share the following property: it is in the patient’s overall interest that the distributor disregards them. I show that Dominance does not permit distributors to disregard such reasons and use this observation to argue against the claim that Dominance is a principle of rationality in distributional contexts.

I discuss the trilemma that consists of the following three principles being inconsistent: 1. The Common Principle: if one distribution, A, necessarily brings a higher total sum of personal value that is distributed in a more egalitarian way than another distribution, B, A is more valuable than B. 2. (Weak) ex-ante Pareto: if one uncertain distribution, A, is more valuable than another uncertain distribution, B, for each patient, A is more valuable than B. 3. Pluralism about attitudes to risk (Pluralism): the personal value of a prospect is a weighted sum of the values of the prospect’s outcomes, but the weight each outcome gets might be different from the probability the prospect assigns to the outcome.