From some points of view, Harsanyi stands apart from other theorists discussed in this book. He was a utilitarian, and he focuses on the hypothetical choices of a single individual. Nevertheless, his construction has been influential, and he has good claim to be the founder of the device of the veil of ignorance. He uses the orthodox utility theory of rationality to show that behind a veil of ignorance in which a hypothetical individual had an equal chance of being anyone in society, rationality would lead to that person adopting the principle of maximizing average utility. Utilitarianism can be represented as the maximizing choice of a rational individual behind the veil of ignorance. A central element in Harsanyi’s construction is the idea of ethical individualism, which he holds is captured in an axiom of independence defining the rationality of choice. He also revives the idea of the interpersonal comparability of utility. His reliance on interpersonal comparisons is a potential point of criticism, as is the argument that, strictly speaking, he has not shown that utilitarianism is required, as distinct from merely being consistent with, his principles of rational choice. A more fundamental criticism is that the phenomenon of preference reversals, well established in empirical literature, call into question the independence axiom. Preference reversals are intelligible. In relation to some cases, they suggest too an important distinction between rational choice and prudent choice.
Delay Discounting and Preference Reversals by Cigarette Smokers
