Reasonable Homunculi Can Disagree: The Impossibility of Welfare Economics

I’ve just uploaded a new working paper, which is a slightly edited version of a chapter from my thesis, to SSRN. Here’s the abstract:

This paper draws on the “preference reversal” literature in psychology and behavioural economics to argue for the impossibility of welfare economics. The effect of normatively-irrelevant contextual factors shows that humans do not have a coherent preference function which pre-exists and informs choice. Every choice is a constructive act which forces us to choose among incommensurable values: choice creates preference. This rules out the possibility of a value-free welfare economics and forces social scientists wishing to make normative conclusions to engage in indeterminate moral reasoning.