ON PLAYING FAIR - PROFESSOR BINMORE ON GAME-THEORY AND THE SOCIAL-CONTRACT

This paper critically reviews Ken Binmore's non-utilitarian and game t heoretic solution to the Arrow problem. Binmore's solution belongs to the same family as Rawls' maximin criterion and requires the use of Na sh bargaining theory, empathetic preferences, and results in evolution ary game theory. Harsanyi has earlier presented a solution that relies on utilitarianism, which requires some exogenous valuation criterion and is therefore incompatible with liberalism. Binmore's rigorous demo nstration of the maximin principle for the first time presents a real alternative to a utilitarian solution.