Abstract

This paper develops a formal approach to evaluating freedom in interactive settings based on the literatures on preference for flexibility and measurement of diversity. The approach posits that freedom has an instrumental component -- grounded in preferences -- and an intrinsic component. The philosophical justification and implications of the approach are considered. In particular, I discuss the nature of the required value judgments. Potential conflicts between freedom and efficiency are explored. On a technical level, the paper extends the notion of a diversity measure (Nehring and Puppe 2002) to menus of lotteries, which is what is needed to evaluate freedom when many agents seek flexibility simultaneously.

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