Justin Leroux

ecolunch

Justin Leroux

HEC Montréal
Ex post costs and ex ante decisions
Marc Fleurbaey
Venue

IBD Salle 16

Îlot Bernard du Bois - Salle 16

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Thursday, March 14, 2019| 12:30pm to 1:45pm
Contact(s)

Mathieu Faure: mathieu.faure[at]univ-amu.fr
Gaëtan Fournier: gaetan.fournier[at]univ-amu.fr

Abstract

When a realized cost or gain is the result of decisions made before uncertainty was resolved, the outcome can only be partly attributed to those decisions, the rest happening by chance. The ex post fair division of costs or gains must reflect this fact, and must therefore make use of the information that was available ex ante, at the time when decisions were made. We characterize families of sharing rules that differ in how they shield agents from `moral luck' and in how consistent they are with respect to the arrival of new information. Distinguishing between these families of rules has policy implications for many social and economic issues, such as drunk driving and climate change.