Efficiency, Equity and Fairness
in Travel Technology
Prof. David Bernstein
James Madison University
Computer Science Department
bernstdh@jmu.edu
Motivation
With Heterogeneous Populations:
Dissimilar people may have different access to technologies
Dissimilar people may be impacted differently by the same technology
With Homogeneous Populations:
Similar people may be treated differently by the same technology
Why Does this Matter?
Public Sector Involvement:
The government plays an important role in many travel technologies and it should "act for the public good" (which may be difficult to define)
Acceptance by the Market:
Ignoring these issues may cause people to reject the technologies
Social Responsibility:
Societies may only be able to succeed if their members worry about these kinds of issues
Framework for Analysis
Efficient Policies
Social welfare is increased (a utilitarian concept)
Kaldor-Hicks criterion
Equitable Policies
Nobody is worse off (an egalitarian concept)
Pareto criterion
Fair/Superfair Policies
People would rather have what they have than what others have
Baumol's envy criterion
Can You Think of Examples of the Following?
Look Good but Actually Inefficient:
Technologies that you might think
a priori
would make things better, but actually make things worse
Efficient but Inequitable:
Technologies that do make people better off in total, but make some people worse off
Efficient and Equitable but Unfair:
Make people better off in total, make nobody worse off, but make some people envious