Abstract
In this paper it is assumed that individual welfare depends on the individual's income and that social welfare functions are of the Harsanyi-type: a weighted average of individual welfare. Individual welfare functions are specified according to empirical findings by Kapteyn, Van Praag*. Assuming that the Dutch income distribution maximizes a social welfare function one can estimate the distribution of weights over the individuals. This is called the power distribution. Since each observer applies his own individual welfare function when estimating the individual welfare of his compatriots, the perceived power distribution varies with the observer.
Published Version
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