Value Pluralism, Trade-Offs and Efficiencies

38 Pages Posted: 5 Oct 2014 Last revised: 13 Apr 2015

See all articles by Nikolai Hoberg

Nikolai Hoberg

Leuphana University of Lüneburg - Dept. of Sustainability Sciences and Dept. of Economics

Stefan Baumgärtner

University of Freiburg - Department of Environment and Natural Resources

Date Written: April 9, 2015

Abstract

Political decision-makers face increasing demands to justify their actions with respect to multiple normative objectives or values. Here, we provide a general philosophical-economic conceptualization and clarification of value pluralism, value-efficiency (i.e. efficiency with respect to values) and feasible relationships between values. We derive what relationships between values can exist in states of affairs that are value-efficient. In particular, we show that in a value-efficient state of affairs there is a trade-off between at least two values, and that a win-win relationship between values is no indication of value-inefficiency when there are three or more values. Further, we connect these relationships to the opportunity costs of attaining a value to a higher degree. Lastly, we contrast Pareto-efficiency with value-efficiency and show that there can be a win-win relationship between values in a Pareto-efficient state of affairs. Our analysis contributes to the philosophical foundation of normative and welfare economics, and provides insights that help decision-making in situations where there are multiple values at stake.

Keywords: efficiency, value pluralism, value trade-offs, welfarism

JEL Classification: D63, H43, H00

Suggested Citation

Hoberg, Nikolai and Baumgärtner, Stefan, Value Pluralism, Trade-Offs and Efficiencies (April 9, 2015). Available at SSRN: https://ssrn.com/abstract=2505089 or http://dx.doi.org/10.2139/ssrn.2505089

Nikolai Hoberg

Leuphana University of Lüneburg - Dept. of Sustainability Sciences and Dept. of Economics ( email )

Scharnhorststrasse 1
Lüneburg, 21314
Germany

Stefan Baumgärtner (Contact Author)

University of Freiburg - Department of Environment and Natural Resources ( email )

Tennebacher Str. 4
Freiburg, 79106
Germany

HOME PAGE: http://www.ere.uni-freiburg.de

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