CONSEQUENCES, OPPORTUNITIES, AND PROCEDURES

This paper reflects on consequentialism which underlies the traditiona l normative economics. It asserts that the informational basis of norm ative economics should be expanded so that the intrinsic value of soci al choice procedures should be properly taken into account along with the value of their consequences. Three examples - the problem of fair cake division, the role of competition in the promotion of economic we lfare, and bilateral trade restrictions - are invoked to pinpoint the services rendered by procedural considerations in making social welfar e judgements. The Pareto libertarian paradox is also re-examined withi n the extended framework incorporating procedural considerations along with consequential considerations.