The value of information in anticipated utility theory

A well-known property of expected utility theory is that the value of information is nonnegative. Given the widespread dissatisfaction with the expected utility hypothesis, a natural question to ask is whether competing theories of choice preserve this property. This article considers one widely discussed alternative to expected utility, anticipated utility theory. We show that, like expected utility, the anticipated value of perfect information is always nonnegative. The value of imperfect information, however, may be negative, though the precise valuation of information depends upon whether the reduction of compound lotteries axiom is used to derive the anticipated utility functional.I am indebted to Edi Karni, Peter Wakker, and an anonymous referee for helpful comments on earlier versions of this article. They are of course in no way responsible for errors or obscurities in the present version.     

Prisoner's dilemma from a moral point of view

In a recent issue of this journal, C. L. Sheng claims to havesolved andexplained the Prisoner's Dilemma (PD) by studying it from a moral point of view - i.e., by assuming that each player feels sympathy for the other. Sheng does not fully clarify this claim, but there is textual evidence that his point is this: PD's arise only for agents who feel little or no sympathy for each other; they cannot arise in the presence of a high degree of reciprocal sympathy. A high degree of such sympathysolves the PD in that it prevents PD's from arising, and a low degree of itexplains the PD in that it provides an essential condition for the occurrence of that game. This thesis is false, as some examples show. These examples are important; they prevent us from underestimating the problem posed by the PD.     

Fulfilment of basic needs from a subjective point of view in rural Guatemala

Guardiola J, García‐Muñoz T. Fulfilment of basic needs from a subjective point of view in rural Guatemala Int J Soc Welfare 2011: 20: 393–403 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and the International Journal of Social Welfare. The study of subjective wellbeing in developing countries is a relatively new field of research, but interest is increasing among researchers. A few decades ago, techniques such as the basic needs approach were applied in order to understand development. The basic needs framework has recently been used to define and monitor the Millennium Development Goals. However, it is limited when it comes to defining the content of basic needs and determining to what extent they are being satisfied, which leaves this decision to an external authority other than the individual. In this article, we estimated how certain indicators and assets have influenced the perception of basic needs in a rural area of Guatemala using a data set containing 369 interviews with Mayan households. The results allowed us to identify the characteristics or assets that influence the perception of basic needs, leaving the decision as to the Mayan people themselves as to whether their basic needs are being met.     

A comparative study of the relationship between pension plans and individual savings in Asian countries from an institutional point of view

Hur MH. A comparative study of the relationship between pension plans and individual savings in Asian countries from an institutional point of view Int J Soc Welfare 2010: 19: 379–389 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This study identifies various saving plans used as alternative pension plans in Asian countries and examines the extent to which these saving plans contribute to their pension schemes. Data were collected from six Asian countries: China, Hong Kong, Japan, Korea, Singapore and Taiwan. The comparison concentrates on an examination of differences and similarities in individual countries' privately managed pension schemes and saving plans. This study suggests that a pension system does not have to be a privately managed plan to encourage individual savings. A critical point for individual savings was avoiding a defined benefit plan. On the basis of these findings, a typology of relationships between second and third pillars and provident funds and incentive systems for individual savings was developed.     

Risk Perceptions and Value of a Statistical Life for Air Pollution and Traffic Accidents: Evidence from Bangkok,Thailand

This paper presents results of two contingent valuation surveys conducted in Bangkok measuring individuals’ willingness to pay (WTP) to reduce mortality risk arising from two risk contexts: air pollution traffic accidents Results from the risk perception survey disclose that respondents view the two risks differently. WTP to reduce air pollution risk is influenced by degrees of dread, severity, controllability and personal exposure, while WTP to reduce traffic accident risk is influenced by perceived immediate occurrence. Nevertheless, the value of a statistical life (VSL) for both air pollution and traffic accidents are comparable (US$0.74 to $1.32 million and US$0.87 to $1.48 million, respectively). This indicates that the risk perception factor alone has little impact on the VSL, a finding similar to previous studies using program choice indifferences.JEL Classification: I18, D61, J17, J28     

Enhancing the rights and well‐being of people with acquired brain injuries in the criminal justice system: Some findings from a qualitative study

This article focuses on the issues currently facing people with an acquired brain injury (ABI) in the criminal justice system in the state of Victoria, Australia and, in particular, the impact of this condition on people suffering various forms of social disadvantage. This qualitative study involved in‐depth interviews with key stakeholders, such as service providers working in the system, court personnel including Magistrates and Judges, legal practitioners and persons living with an ABI and their carers. The aim was to determine the advantages and limitations of current policy and practices, and to identify possible actions which could lead to improved outcomes for this cohort. This paper responds to our research findings in relation to two key areas: first, the awareness of ABI amongst legal practitioners and service providers, prompting the need for better education, training and professional development; and second, the requirement to improve processes for identification, assessment and support, for people involved in the criminal justice system with ABI. A number of systemic modifications and educational initiatives are recommended to address the unreasonable and unacceptable impacts on persons living with an ABI in the criminal justice system.