Effectiveness analysis and value incommensurability

TL;DR

The paper discusses how some benefits and costs in effectiveness analysis cannot be compared, leading to challenges in decision-making.

Contribution

The paper introduces the concept of value incommensurability in effectiveness analysis and evaluates two problematic responses to it.

Findings

Some benefits and costs in effectiveness analysis are incommensurable in value.

Replacing one-dimensional measures with multi-dimensional ones is problematic.

Sticking to conventional measures also fails to reflect actual values.

Abstract

This paper argues that in many contexts where effectiveness analysis such as benefit-cost analysis and cost-effectiveness analysis is used, we have good reason to think that some benefits or costs are incommensurable in value such that neither can be determined to be better than the other, although they cannot be determined to be equally good either. Two responses to such value incommensurability are outlined: abandoning conventional ways of measuring benefits and costs and replacing one-dimensional measures with multi-dimensional measures or sticking to conventional ways of measuring benefits and costs and accepting that whatever valuation one comes up with, it will fail to reflect the actual values and value relations between benefits and costs. Both responses are argued to be problematic.