egalitarian rule

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      In social choice and operations research, the egalitarian rule (also called the max-min rule or the Rawlsian rule) is a rule saying that, among all possible alternatives, society should pick the alternative which maximizes the minimum utility of all individuals in society. It is a formal mathematical representation of the egalitarian philosophy. It also corresponds to John Rawls' principle of maximizing the welfare of the worst-off individual.


      Definition


      Let



      X


      {\displaystyle X}

      be a set of possible `states of the world' or `alternatives'. Society wishes to choose a single state from



      X


      {\displaystyle X}

      . For example, in a single-winner election,



      X


      {\displaystyle X}

      may represent the set of candidates; in a resource allocation setting,



      X


      {\displaystyle X}

      may represent all possible allocations.
      Let



      I


      {\displaystyle I}

      be a finite set, representing a collection of individuals. For each



      i
      ∈
      I


      {\displaystyle i\in I}

      , let




      u

      i


      :
      X
      ⟶

      R



      {\displaystyle u_{i}:X\longrightarrow \mathbb {R} }

      be a utility function, describing the amount of happiness an individual i derives from each possible state.
      A social choice rule is a mechanism which uses the data



      (

      u

      i



      )

      i
      ∈
      I




      {\displaystyle (u_{i})_{i\in I}}

      to select some element(s) from



      X


      {\displaystyle X}

      which are `best' for society. The question of what 'best' means is the basic question of social choice theory. The egalitarian rule selects an element



      x
      ∈
      X


      {\displaystyle x\in X}

      which maximizes the minimum utility, that is, it solves the following optimization problem:


      = Leximin rule

      =
      Often, there are many different states with the same minimum utility. For example, a state with utility profile (0,100,100) has the same minimum value as a state with utility profile (0,0,0). In this case, the egalitarian rule often uses the leximin order, that is: subject to maximizing the smallest utility, it aims to maximize the next-smallest utility; subject to that, maximize the next-smallest utility, and so on.
      For example, suppose there are two individuals - Alice and George, and three possible states: state x gives a utility of 2 to Alice and 4 to George; state y gives a utility of 9 to Alice and 1 to George; and state z gives a utility of 1 to Alice and 8 to George. Then state x is leximin-optimal, since its utility profile is (2,4) which is leximin-larger than that of y (9,1) and z (1,8).
      The egalitarian rule strengthened with the leximin order is often called the leximin rule, to distinguish it from the simpler max-min rule.
      The leximin rule for social choice was introduced by Amartya Sen in 1970, and discussed in depth in many later books.: sub.2.5 


      Properties




      = Conditions for Pareto efficiency

      =
      The leximin rule is Pareto-efficient if the outcomes of every decision are known with certainty. However, by Harsanyi's utilitarian theorem, any leximin function is Pareto-inefficient for a society that must make tradeoffs under uncertainty: There exist situations in which every person in a society would be better-off (ex ante) if they were to take a particular bet, but the leximin rule will reject it (because some person might be made worse off ex post).


      = Pigou-Dalton property

      =
      The leximin rule satisfies the Pigou–Dalton principle, that is: if utility is "moved" from an agent with more utility to an agent with less utility, and as a result, the utility-difference between them becomes smaller, then resulting alternative is preferred.
      Moreover, the leximin rule is the only social-welfare ordering rule which simultaneously satisfies the following three properties:: 266 

      Pareto efficiency;
      Pigou-Dalton principle;
      Independence of common utility pace - if all utilities are transformed by a common monotonically-increasing function, then the ordering of the alternatives remains the same.


      Egalitarian resource allocation


      The egalitarian rule is particularly useful as a rule for fair division. In this setting, the set



      X


      {\displaystyle X}

      represents all possible allocations, and the goal is to find an allocation which maximizes the minimum utility, or the leximin vector. This rule has been studied in several contexts:

      Division of a single homogeneous resource;
      Fair subset sum problem;
      Egalitarian cake-cutting;
      Egalitarian item allocation.
      Egalitarian (leximin) bargaining.


      See also


      Utilitarian rule - a different rule that emphasizes the sum of utilities rather than the smallest utility.
      Proportional-fair rule
      Max-min fair scheduling - max-min fairness in process scheduling.
      Regret (decision theory)
      Wald's maximin model


      References

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