Fairness, Freedom, and Forgiveness in Health Care

Abstract

[Abstract] This paper focuses on the optimal allocation between health and lifestyle choices when society is concerned about forgiveness. Based on the idea of fresh starts, we construct a social ordering that permits us to make welfare assessments when it is acceptable to compensate individuals who have mismanaged their initial resources. Our social rule also allows for the inclusion of the fairness and responsibility approach in the model. Grounded on basic ethical principles, we propose the application of the minimax criterion to the existing distance between the individual’s final bundle and her ideal choice.