PHIL215 Lecture Notes - Lecture 8: Ultimatum Game, Diminishing Returns, Utility
12 Dec 2019
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Review from last class: money does not have a linear utility function. Utilities have diminishing returns once they pass a certain threshold. We notice that the happiest countries are not necessarily the wealthiest. All the happiest countries have low income inequality (green) except iceland (no data) Wealth alone does not increase happiness beyond a relatively modest point. Some of the least happy places in the world have the worst income inequality, while some of the happiest have the least income inequality. Thus there is some evidence that massive income inequality promotes negative utility. The world"s 10 richest billionaires, according to forbes, own billion in combined wealth, a sum greater than the total goods and services most nations produce on a annual basis. More than 70 percent of the world"s adults own under ,000 in wealth. This 70. 1 percent of the world holds only 3 percent of global wealth.
