I think this last point essentially denies the third axiom above, which is what connects individual vNM utility and social/ethical preferences. (The original statement of the second axiom is just vNM rationality for social/ethical preferences, and has no relationship with the individuals’ preferences.)
I think this last point essentially denies the third axiom above, which is what connects individual vNM utility and social/ethical preferences. (The original statement of the second axiom is just vNM rationality for social/ethical preferences, and has no relationship with the individuals’ preferences.)