Collective Decisions under Uncertainty

Perhaps the most significant contribution in the theory of distributive justice is due to Rawls (1958, 1971, 1982). In his search for the principles of distributive justice, Rawls considered a society which is founded on the notion of social contract. The contract specifies the rights and the duties of the members. In order to explain his notion of distributive justice, Rawls introduced the concept of primary goods — goods needed by everyone in the society for their existence and self-development. The primary goods may be considered as essential goods needed for the survival and effective functioning in the social context (see Braybrooke, 1987). Each person in the Rawlsian society, faces N states of nature and is asked to select a distribution mechanism from M alternatives. It is assumed that everyone is under a veil of ignorance so that no one knows which state of nature will prevail. Roughly speaking, Rawls argues that if we accept his scenario as the original position then each person will prefer the distribution mechanism which maximizes the benefit of the least well-off in the society. Rawls argues that individual preferences should be such that primary goods, including liberty, have priority over non-primary goods (lexicographic ordering) and no substitution is allowed between primary goods and non-primary goods. This is known as the maximim principle of distributive justice. Rawls calls it the difference principle.1