Strict Comparisons of Infinite Utility Streams

TL;DR

This paper constructs a preference relation on infinite utility streams that is non-discriminatory, Pareto-efficient, and almost always strictly comparable, challenging previous claims about intergenerational equity.

Contribution

It provides a counterexample to prior assertions by demonstrating a preference relation with these properties on infinite utility streams.

Findings

Existence of a preference relation satisfying key fairness and comparability criteria.

Counterexample to the claim that such preferences cannot exist.

Challenges assumptions in intergenerational equity theory.

Abstract

There exists a preference relation on infinite utility streams that does not discriminate between different periods, satisfies the Pareto criterion, and so that almost all pairs of utility streams are strictly comparable. Such a preference relation provides a counterexample to a claim in [Zame, William R. ``Can intergenerational equity be operationalized?'' Theoretical Economics 2.2 (2007): 187-202.]