Game Theory Decision Theory And Social Choice Theory In The Context Of A New Theory Of Equity

Some of thee interrelationships between game theory, axiomatic social choice theory, and ethics are set forth in the context of a new theory of equity. One of the principal functions of the new theory is to explicate alternative intuitive concepts of equity such as 'To Each According to His Needs, ' and 'To Each According to His Contribution.' Game theoretic methods are used not only to provide an unambiguous, analytical characterization of these (and other) concepts, but also to integrate the various concepts within a single, coherent account of equity. In Section II, the reader is furnished with an overview of the Basic structure of the theory. In Section III, the subtheory of distribution according to relative needs is developed. Here attention is drawn to the mathematical equivalence of the ethical model developed in this theory with the Nash-Harsanyi theory of pure n-person bargaining games and with the Kaneko-Nakamura version of axiomatic social choice theory. In Section IV, the subtheory of distribution according to relative contribution is discussed. And Section V presents an informal characterization of a two-stage game, which when played, will realize 'full distributive justice' as understood in the new theory.