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356
[JUNE
"we might suppose that the object which X (whose own utility is P),
tends-in a calm, effective moment- to maximise, is not P, but P + All;
where A is a coefficientof efective sympathy[Edgeworth's italics]. And similarly Y-not of course while rushing to self-gratification, but in those
regnant moments which characterise an ethical ' method '-may propose
to himself as end 11+ ,tP. What, then, will be the contract curve of these
modified contractors? The old contractcurvebetweennarrowerlimits [Edgeworth's italics] ... As the coefficients of sympathy increase, utilitarianism
becomes more pure, the contractcurvenarrowsdown to the utilitarianpoint."
(P. 53, n. 1.)
x
y~~~'
X
FIG. 1
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1975]
EDGEWORTH'S
PROPOSITIONS
ON ALTRUISM
357
A=
I=
1.
III
Is the non-twisting theorem true? It is intuitively clear that non-twisting
has something to do with the assumption that weights are attached to the
utilities of others, not to specific goods in their bundles. That is to say, there is
nothing paternalistic in Edgeworth's benevolence. One is indifferent as to
whether the other's enjoyment (utility given) is worthy or unworthy. But it
turns out that this assumption is a sufficient though not a necessary condition.
In the two-person case goods are allocated either to one person or the other
so that dXBldxA =-1.
Then the general condition for Pareto-optimality with
interdependent utility is
aUA/IXA
aUA/IXB
auXB/IXA
_aUB/XB
aUAIayA-aUAIaYB
aUBIayB-aUBIy(YA
In Edgeworth's case
aUA/IXB = A aUB/IXB
and
aUB/IXA = ,# OUAI/XA
auB/axB
aUAIayA
aUBlayB
OUAIOYA
OUBIOYB
(2)
as
SAXauA/axA,
etc.
etc.
I I have benefited from correspondence with WilliamJaffe on this and, indeed, on what he calls
"the mysteries of Edgeworth's idosyncratic modes of mathematical expression".
2
Frisch (op. cit.) similarly distinguishes between the "Kooperations-Kurve" and the "Konflictkurve ".
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358
[JUNE
IV
Edgeworth's propositions (2) and (2 a) will now be considered together.
The first point to notice is that the weights A and It are not adjusted to take
account of relative incomes but, rather, each actor has sufficient sympathy to
perceive the other's increasing marginal utility as his bundle of goods
decreases.
Presumably B's marginal utility becomes very high indeed with small
bundles so that A's point of maximum utility (a) will definitely move to the
south-west as A increases. Under these assumptions the pure contractcurvewill
definitely shrink as both A and ,t increase.
Proposition (2 a) says that a and b will coincide when A = It = 1. It is easy
to show that this is correct. More interestingly they will coincide whenever
A, = 1. That is there will be a perfect consensusnot only when A and B behave
utilitarianly but whenever the one's weak altruism is offset by the strong
altruism of the other.
To show this consider, as did Edgeworth, an index (o) of the contract curve
(O < o < 1) from A's origin. Let the two individuals experience direct
(hedonistic) utilities but also some concern for one another, as follows:
VA=
UA(0)
+AUB(1
(3)
VB = UB(1-O) +tUA(UA
()
-Ad d8B/do-* -
-duB/do* + duB/do-* = 0
(4)
From which3
A#u= 1
(5)
The same result may be achieved rather more simply by considering the
matrix of weights:
1 For a similar treatment in a different context see A. K. Sen, "Labour Allocation in a Cooperative Enterprise," Reviewof EconomicStudies,Vol. XXXIII (4), Oct. 1966, pp. 361-71.
2 In which case Pareto-optimal redistribution can no longer be restricted to general purchasing
power but may require redistribution in kind.
3 SeeJ. de V. Graaff's formula (15) in his appendix to chapter iv of TheoreticalWelfareEconomics
(Cambridge, 1957) for the slope of the utility possibility curve. The careful reader will notice, by the
way, that the formula is slightly misprinted. With perfect consensus there will be no downward
sloping portion of the utility possibility curve. If one inserts Edgeworth's notation into de Graaff's
formula one obtains, for consensus, (1 -AA) (au lax) = 0. That is, either AAt= 1 or "satiation".
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1975]
EDGEWORTH'S PROPOSITIONS
To
By A
y B
ON ALTRUISM
359
A
1
B
A
A and B may be said to use identical social weights whenever one row is simply
a multiple of the other.1 As we have constrained the diagonal weights to unity
the condition Alt = 1 follows immediately.
x
x
FIG. 2
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360
[JUNE 1975]
would reach an optimal bundle before the total was exhausted. Hence the
economic problem has disappeared. I am tempted to call this the vanishing
theorem.1But the situation should not be confused with satiety proper as it
remains the case that each would truly like more goods were it not for the fact
that he would thereby deprive the other. It would be open to them to cleave
the knot by accepting some arbitrary rule to allocate whatever is " left-over ".*2
In terms of the diagram the range a-b is still the pure contract curve (points
on it are better than points off it) and allocations to the south-west of a or
north-east of b will not be sustained. However, the situation is the reverse of
the usual one in that each would prefer the otherto have more.
VII
Summaryand Conclusions
I have suggested that two theorems, the " non-twisting " and " shrinking"
theorems, are to be found in Edgeworth's analysis of altruism and are correct
on his assumptions. Additionally his remarks about the "utilitarian point"
may be generalised into a " consensus " theorem and into a " vanishing"
theorem when altruism is excessive.
DAVID COLLARD
University of Bristol.
Date of receiptoffinal typescript: October1974.
1 It is as thoughboth parties were sated. Thus David Hume in a brilliant passage: " [the poets]
easily perceived, if every man had a tender regard to another, or if nature supplied abundantly all
our needs and desires, that the jealousy of interest, which justice supposes, could no longer have
place ... encreaseto a sufficientdegreethe benevolence
of men, or the bountyof nature,and you renderjustice
useless" (Treatise (my italics)).
2 Another possibility, as a referee has pointed out, is that the parties revise their expectations
about scarcity. Each would perceive that dxildxj was zero, not - 1, and points like "a" would be
adjusted upwards until the resource constraint again became tight.
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