Page numbers refer to the print edition but are hyperlinked to the appropriate location in the e-book.
aggregate income share data, 196
American capitalist society, economic ecosystem in, 185
Ananda Malai confections fairness example: fairest income distribution scenario in, 94–96; known aggregate demand scenario in, 92–94, 93; lock-and-key market-company relationship in, 96–97; overview, 89–90; unknown demand scenario in, 90–92
arbitrariness: avoidance principle of, 88; metric, 91; structural, 91
Ars Conjectandi (Bernoulli, J.), 89
artificial intelligence (AI), xviii
Australia: Gini coefficients for, 159–60; income inequality in, 150, 155; maximum income in, 146; pay ratios in, 174
authoritarian society, 206
avoidance principle, of arbitrariness, 88
Bebchuk, Lucian, 6–7; on CEOs pay, 170, 174, 177; on rent-seeking behavior, 45
Bentham, Jeremy, 27; on goal of life, 36; insights of, 141; SO and, 118; on societal happiness, 196, 211
BhuVai, 24, 130; as envy-free society, 39; equal happiness in, 39, 43, 212; equilibrium income distribution in, 84–86; fair capitalist society and, 38–41; homogenous population in, 212; as hybrid utopia, 192–93, 195; income distribution in, 44, 144; income inequality in, 147; lognormal distribution of, 154; real-world societies and, 143, 195–96. See also distributive justice, in BhuVai
bias, 81; least biased distribution, 99, 101
Boltzmann constant, 62, 70, 84
Boltzmann distribution, 69, 83; exponential distribution and, 85, 229
bottom-up perspective, 55
Britain, pay ratios in, 174
Bureau of Labor Statistics, 184
Canada: Gini coefficients for, 159–60; income inequality in, 152, 155; maximum income in, 146; pay ratios in, 174
Capital in the Twenty-First Century (Piketty), 2
career advancement, motivation for, 214–16
Carnot, Sadi, 65; as father of thermodynamics, 74
CEOs: company success due to, 175, 176–77; compensation metrics relating to, 177; excessive compensations for, 45, 169, 181–82; as hired hand, 7; income percentage of, 177–81; measurable accomplishments of, 176; new generation of, 177; as sports/movie stars, 175–77; stakeholders relating to, 183; value of, 169–70, 177–81
CEOs, pay ratios of, 5–7, 6, 24, 169, 178; actual, estimated, 8; in Switzerland, 161
Chebychev inequality, 100
Clausius-Boltzmann magnitudes, 22
closed thermodynamic system, 68
compensation metrics, 177
competitive interaction, 51
Concerning Human Understanding (Locke), 37
Conscious Capitalism (Mackey and Sisodia), 183, 189
control, extreme income inequality and, 13–14
corporate governance, 236
cost-benefit trade-offs: home-buying example, 217–20; job-offers example, 221–23
Crystal, Graef “Bud,” 7, 177
Darwinian evolution, statistical teleodynamics and, 207–8
Declaration of Independence, 32, 35
Denmark, 236; income inequality in, 149, 154, 165; maximum income in, 146; minimum wage for, 145
desert view of fairness, 98–102
design, 81, 202–4, 206, 207; and control principles, for fair capitalist society, 30; of hybrid societies, 192–98; perspective of, 102
distribution: maximum, 109–10, 110; of wealth, 11, 12. See also specific distribution
distributive justice, xxi; addressing challenge of, 141; Dworkin on, 29, 193; happiness and, 41; Rawls on, 28, 193, 194
distributive justice, in BhuVai: equilibrium income distribution and, 61–62; game theory formulation and, 55–61; ideal versus real-life free market in, 44–48; income distribution and, 44; net utility’s inverted u-profile in, 51–54, 53; overview, 43; restless agents model and, 49–55; statistical thermodynamics connection, 62–63
Dworkin, Ronald, 22, 24, 26, 27; on distributive justice, 29, 193; on envy-free society, 196; on equality of welfare, 39–40; framing fair society, 31; insights of, 141; mathematization of, xxi; political economic theory of, 192; resource egalitarianism of, 29; rigor of, 33; thought experiment of, 29–30
economic ecosystem, 189; in American capitalist society, 185; companies in, 185; customer with, 187; enabling elements of, 186; invaluable role of, 185; investor in, 187–88; market for, 187; nurtured and support of, 186; recognition and reward of, 187; in Silicon Valley, 186, 188; systemic failure of, 187; systemic success of, 186; technologies with, 187
economic growth: of India, 225–26; innovation relating to, 227; per capita GDP relating to, 225–26; of United States, 225–27
economic prescriptions, 235
“Economics Is Not a Morality Play” (Krugman), 115
economy, 234; entropy in, 21–22; inequality of, 8–12; laissez-faire, 132; in Scandinavia, 166; in Soviet Union, 166
econophysics, economics and, 228; fairness relating to, 228; zero intelligence relating to, 228
education and skills assistance, 236
employment, reasons for seeking, 49–50
entropy: Boltzmann and, 74, 104, 211, 224; Clausius-Boltzmann magnitudes of, 22; Clausius on, 73–74, 211; correcting misinterpretations, 102–12; discovery of, 66; in economics, 21–22; econophysics, economics and, 228; fairness and, xix, 89–105; in free-market dynamics, 103, 105–8; in free-market society, xxii; as gem, xxi; Gibbs on, 66, 104, 211; Helmholtz on, 104; introduction to, 24; invisible hand and, 108–11; law of, 70; lognormal distribution and, 162; maximizing, 62; maximum distributions, 109–10, 110; principle of maximum, 101–2, 109, 111, 205, 224, 235; in qualitative theory of fairness, 23; rediscovery of, 104; robustness and, 105; in statistical thermodynamics, 69–77; as systems property, 75. See also maximum entropy design postulate
envy-free society, 39, 196
equal a priori probability postulate, 76, 194, 209
equality: of access, 51; in hybrid societies, 193; in input, 200; in opportunity to compete, 200; in outcome, 200; principles of, 27–28, 87, 193, 195, 198, 199, 200; of resources, 29–30, 39
equality of welfare, 29, 39–40; at equilibrium, 117
equilibrium: equality of welfare at, 117; in game theory, 55–57; social optimality at, 118–20; statistical, 69; statistical mechanical, 62; strategic, 56; thermodynamic, 69, 71, 229; utility at, 234. See also Nash equilibrium; statistical equilibrium; Walrasian general equilibrium model
equilibrium density curve, 136–37
equilibrium energy distribution, 84
equilibrium postulate, 209
Essai philosophique sur les probabilités (Laplace), 89
Europe, income inequality in, 4
evolutionary dynamics, 112
exponential distribution, 85, 229
exponential stability, 129
extreme income inequality, 155–57; capitalism threatened by, 15; cause of, 178; consequences of, 14–15; control and, 13–14; moral issue of, 13, 16; stability and, 15; as systemic failure, 237–38; in United States, 238; as worrisome, 12–16
fair capitalist society: BhuVai and, 38–41; design and control principles for, 30; new theory of hybrid society, 31–34; philosophical perspectives, 25–30; purpose of society in, 34–38; theoretic perspective, 30–34
fair competitive environment, 51
fair distribution of income, 191
fair equality of opportunity, 28, 51, 197
fair equality of opportunity principle, 194–95
fairest income distribution, 217; scenario, 94–96
fairest inequality of income, 234
fairness: Ananda Malai confections example, 89–97; arbitrariness avoidance principle in, 88; desert view of, 98–102; econophysics, economics and, 228; entropy and, xix, 89–105; equality principle in, 87; of equilibrium distribution, 86–102; fair equality of opportunity, 28; in France, Germany, Switzerland, 147; of free-market society, 123–30; Gini coefficient and, 158; intercategory, 216; intracategory, 216; job categories and, 96–97; literature on, 25–26; lognormal distribution and, xix, 23–24, 143; maximizing, 127; moral principles of, 26; multiplicity and, 89–102; new mathematical theory of, 16–24; new measure for income inequality, 147; in pay ratios, 47–48; principle of maximum fairness, 33, 140, 200; principles of, 87–89; proportionality principle in, 87–88; quantitative theory of, 22–24; in United States, 145–47; utility function models of, 216–17. See also free-market fairness restoration; maximum fairness; theory, of fairness in economics and political philosophy; unfairness
fair opportunity, at better careers, 216
fair pay, for executives, 169–70; company success relating to, 175–89; theory’s predictions, for large corporations, 171–74
Federal Reserve Board, 127
Feynman, Richard, 79, 140
“Financial Crisis, The: Why Have No High-Level Executives Been Prosecuted?” (Rakoff), 181
Financial Crisis Inquiry Commission, 181
Fleischacker, Samuel, 116
four-class societies, 196
France: fairness in, 147; Gini coefficients for, 159–60; income inequality in, 151, 155; maximum income in, 146; pay ratios in, 174
free-market based hybrid societies, 34, 236
free-market capitalist societies, political philosophy for, 191
free-market complexity model, 217–25, 247n4; cost-benefit trade-offs, home-buying example, 217–20; cost-benefit trade-offs, job-offers example, 221–23; equations relating to, 217; principle of maximum entropy, 224; utility function features, 223–24
Free Market Fairness (Tomasi), 30
free-market fairness restoration, 241
free-market society, xxii, 123–30, 191–92, 234; characteristics of, 43; dynamics of, xix; economist’s perspective, xx; entropy in, xxii; fairest distribution of income in, 217; fairness, stability, robustness of, 123–30; foundational elements of, 130–31, 239; Gedankenexperiment in ideal, 46–49; hybrid society as, 34, 236; ideal versus real-life, 44–48; justification for, 138; moral issue of, 17–18; Nozick on, 117; pay distribution in ideal, 46; Reich on, 45, 116, 170, 201, 241; stability of, 20, 184; Stiglitz on, 116; study of, xvii–xviii; in United States, 166–67, 237, 247n5. See also ideal free-market society
Fried, Jesse, 6–7; on CEOs pay, 170, 174, 177; on rent-seeking behavior, 45
games. See specific games
game theoretic-statistical mechanics perspective, 208
game theory, xix, xxii, 24; formulation of free-market dynamics, 55–61; players, strategies, equilibrium, 55–57; population games and potential function, 57–61; potential function in, 108–9, 211, 234, 235; statistical mechanics and, 229
Gedankenexperiment, 46–49
General Theory, The (Keynes), 106
Germany: fairness in, 147; Gini coefficients for, 159–60; income inequality in, 151, 155; maximum income in, 146; pay ratios in, 174
Gini coefficients, 24; early to mid-2000s, 159–60; fairness and, 158; income equality global trends, 159–60; lognormal distribution compared to, 158–62
Global Financial Crisis of 2007-2009, 134, 187
grand canonical ensemble, 68
happiness: distributive justice and, 41; equal, 39, 43, 212; measuring, 40; pursuit, 37–38, 211; societal, 21, 196, 211; World Happiness Report, 40. See also utility
Helmholtz, Hermann, 65; on entropy, 104
Helmholtz free energy, 85, 114
Hill, Christopher T., 199
Homo Economicus model, 209
homogenous population, in BhuVai, 212
“How Should We Use Entropy in Economics?” (Jaynes), 105
hybrid societies, 246n2; design of, 192–98; as free-market based, 34, 236; independence in, 34; liberty and equality in, 193; new theory of, 31–34; systems engineering perspective of, 34–38; utopian, 33, 38–41. See also BhuVai
ideal free-market society, 44–48, 191; equality of welfare at equilibrium in, 117; moral justification for, 115–21; NE and SO in, 120–21; pay distribution in, 46; Smith on, 119, 194, 211, 236, 237, 241; SO at equilibrium in, 118–20
ideal income distribution, 138
ideal pay ratios, for CEOs, 8
inalienable properties, 68
income distribution, 1; in BhuVai, 44, 144; capitalism and, 128; correcting misinterpretations of entropy, 102–12; fairness, stability, robustness of free-market society and, 123–30; fairness of equilibrium distribution, 86–102; ideal, 138; intrinsic and extrinsic properties of statistical teleodynamics, 81–82; lognormal distribution for, 138, 193, 236; model predictions, 146; moral issue of, 17–18; moral justification of ideal free-market society and, 115–21; Nozick on, 44; phase space in teleodynamic systems and, 82–84; power and, 170; principles of fairness and, 87–89; questions for, 17–20; replicator dynamics and, 112–15; stability of, 129; stability of equilibrium income distribution in, 121–23; teleogical systems and, 79–81; Walrasian general equilibrium model and, 130–35, 139. See also equilibrium income distribution; fairest income distribution
income equality, Nozick on, 192, 193
income inequality, xvii, 201; American and Swedish preference for, 9, 10; Anglo-Saxon, 1910–2010, 4; in Australia, 150, 155; in BhuVai, 147; in Canada, 152, 155; comparing theory with reality, 144, 145; in Denmark, 149, 154, 165; economic inequality and, 8–12; Europe, 1910–2010, 4; in executive pay and CEO pay ratios, 5–7, 6, 24; in France, 151, 155; in Germany, 151, 155; Gini coefficient versus lognormal distribution in, 158–62; identifying, 2; in Japan, 152, 155; loss of growth due to extreme inequality, 155–57; in Netherlands, 150, 155; new mathematical theory of fairness, 16–24; new measure of fairness in, 147; in Norway, 148, 154, 165; in one-class and two-class societies, 162–65, 163, 196, 212–13; overview, 143–44; qualities of rich and, 157–58; rise of top 1% and fall of bottom 90%, 1–5; in Scandinavia, 157–58; summary, 165–67; in Sweden, 148, 154, 165; in Switzerland, 149, 154, 165; unfairness in, 158, 165; in United Kingdom, 153, 155; when needed, 12. See also extreme income inequality
income inequality, in United States: 1910–2010, 2; 1930s to 2010s, 153, 155–57; 1945–1975, 155–57; top 1%, 1910–2010, 3
income percentage, of CEOs, 177–81
India, economic growth of, 225–26
indifference, principles of, 89, 210
Inquiry into the Causes of the Wealth of Nations, An (Smith), 18
In Search of Excess (Crystal), 7
insights, 141; conceptual, 140; for cost-benegit trade-offs, 222–24
intercategory fairness, 216
intracategory fairness, 216
intrinsic properties, 81–82
investor, in economic ecosystem, 187–88
invisible hand: entropy and, 108–11; mathematical basis for, 132; Nozick and, 87; of Smith, xix, 18–20, 48, 234–35; in The Theory of Moral Sentiments, 18–19; in Wealth of Nations, 19
isolated thermodynamic system, 68
Japan: Gini coefficients for, 159–60; income inequality in, 152, 155; maximum income in, 146; pay ratios in, 174
Joule, James Prescott, 65
Justice as Fairness (Rawls), 27
Justice as Fairness theory, 87
known aggregate demand scenario, 92–94, 93
laissez-faire economy, 132
Laplace, Pierre Simon, 89
law of conservation of energy, 66, 70
least biased distribution, 99, 101
Liber de Ludo Aleae (Cardano), 88–89
lock-and-key market-company relationship, 96–97
Locke, John: insights of, 141; mathematization of, xxi; on pursuit of happiness, 37–38, 211
lognormal distribution, 133, 212, 230; of BhuVai, 154; entropy and, 162; fairness and, xix, 23–24, 143; Gini coefficient compared to, 158–62; as gold standard, 141; ideal, 145–47, 170; for income distribution, 138, 193, 236; misidentifying, 163–66; misinterpreting, 22; overlapping, 196; pay and salaries based on, 170–71; proving, 85–87, 101–2, 117, 137; theory’s predictions, for large corporations with, 171
Lucas, Robert E., Jr., 26, 225
Luxembourg Income Studies Database (LIS), 159, 159, 160
macrostates: extremely likely and unlikely, 74, 75; in statistical thermodynamics, 67–69
mathematical basis, for invisible hand, 132
mathematical foundations, of a utopian capitalist society, 192–201
mathematical framework, for theory examination, 182
mathematical theory, of fairness, 16–24
maximum fairness, 33, 140; in design postulate, 204–5, 206, 207, 210; as design principle, 192–98, 200, 246n1; maximum entropy principle and, 235; as symmetry principle, 198–201, 247n3; as universal principle, 200
measurable accomplishments, of CEOs, 176
measure of uncertainty, 70, 210
microcanonical ensemble, 68
microstates: making additional, 75; in statistical thermodynamics, 67–69
micro survival postulate, 208–9
Mill, John Stuart, 24, 211; framing fair society, 31; on goal of life, 36; insights of, 141; political economic theory of, 192; SO and, 118; on societal happiness, 21, 196; utilitarianism of, 27, 34
minimal state argument, 28–29
moral issues, 13, 16, 17–18, 26; with ideal free-market society justification, 115–21
Morgenstern, Oskar, 55–56
multiplicity: fairness and, 89–102; increasing, 74; in statistical thermodynamics, 67–69
Nash equilibrium (NE), 56–57, 59, 62, 84, 118–19, 217; arriving at, 139, 210; in ideal free-market society, 120–21; indifference with, 210; mixed strategies with, 209–10; statistical equilibrium and, 209–10, 211, 229
National Bureau of Economic Research, 184
naturally arising distribution, Nozick on, 110–11
Navier-Stokes equations, 139
negative semidefinite, 123
Netherlands: average salaries in, 145; Gini coefficients for, 159–60; income inequality in, 150, 155; maximum income in, 146
net utility’s inverted u-profile, 51–54, 53
Newton’s laws of motion, 68, 70–73; for molecular collisions, 84; prisoners of, 79–80
normative analytical theory, 191, 234
Norway: Gini coefficients for, 159–60; income inequality in, 148, 154, 165; maximum income in, 146; minimum wage for, 145
Nozick, Robert, 22, 24, 26, 27; framing fair society, 31; free-market principles of, 32, 192, 194, 211, 235; on free-market society, 117; on income distribution, 44; on income equality, 192, 193; independence and, 34; insights of, 141; invisible hand and, 87; libertarianism of, 30, 195, 196; mathematization of, xxi; minimal state argument of, 28–29; on naturally arising distribution, 110–11; purpose of society and, 36–37; rigor of, 33
open thermodynamic system, 68
operational perspective, 102
Organisation for Economic Co-operation and Development (OECD), 159
Pareto distribution: misidentifying, 133; as power law, 162–63, 171
pay and salaries, based on lognormal distribution, 170–71
pay compression policy, 182–83
pay distribution, in ideal free-market society, 46
payoff, 55, 57, 111; personal attributes and preference of, 213–14
pay ratios, 172–73, 173; actual, estimated, ideal, 8; in Australia, 174; in Britain, 174; in Canada, 174; for CEOs, 5–7, 6, 8, 24, 161, 169, 178; in executive pay, 5–7; fairness in, 47–48; in France, 174; in Germany, 174; in Japan, 174; for Switzerland CEOs, 161; underestimation of, 9, 10; in United States, 174
Pay without Performance: The Unfulfilled Promise of Executive Compensation (Bebchuk and Fried), 6–7
performance: levels of, 80; peak, 215
phase space: defined, 69; evolving systems and, 70; in statistical thermodynamics, 69–77; in teleodynamic systems, 82–84
political economic theory: of Dworkin, 192; of Mill, 192
political philosophy, 191, 234
potential game theory, 57–61
power, income and wealth with, 170
pragmatic egalitarianism, 33, 193
pragmatic libertarianism, 33, 193
preference parameters, 223
progressive taxation, 236
proportionality principle, 87–88, 98
pure model societies, 192
qualitative insights, 140
qualitative theory of fairness: entropy in, 23; outline of, 22–24; predictions of, 23
Rawls, John, 22, 24, 26, 235; difference principle of, 32, 192; on distributive justice, 28, 193, 194; egalitarianism of, 29–30, 195; fair equality of opportunity principle of, 194–95; framing fair society, 31; on income, 48; insights of, 141; Justice as Fairness theory of, 87; mathematization of, xxi; minimum wage and, 34; principles of liberty and equality, 27–28, 193, 195, 211; purpose of society and, 36–37; rigor of, 33; strong state argument of, 28; veil of ignorance and, 9, 27
real-life nonideal conditions, 158, 192
Reich, Robert, 5–6, 14–15, 107, 115; arguments of, 121, 205; CEO list by, 179; on CEOs pay, 177; on free-market society, 45, 116, 170, 201, 241; on predistribution, 156
rent-seeking behavior, 45
resource egalitarianism, 29
restless agents model: distributive justice in BhuVai and, 49–55; utility of fair opportunity for better future, 50–51
robustness: efficiency and, xviii, 36, 126–28; entropy and, 105; of free-market society, 123–30; maximizing of, 92–93, 97; optimally robust design, 81; stability and, 125–26; systems engineering on, 127–28
rotational symmetry, of circle, 198–99
Saving Capitalism (Reich), 5–6
“Science and Method” (Poincaré), 224
Securities and Exchange Commission, 127
self-organized complex adaptive systems: design of, xviii; understanding, xvii
semiquantitative impressions, of market, 220
Sen, Amartya, 21, 26, 105; rigor of, 33; special treatment addressed by, 34
Smith, Adam, 1, 108, 143, 184, 189, 217; on capitalism, 116; on ideal free-market society, 119, 194, 211, 236, 237, 241; insights of, 141; invisible hand of, xix, 18–20, 48, 234–35; mathematization of, xxi; on pursuing interests, 39
societies. See specific societies
Soviet Union, economy in, 166
stability: asymptotic, 121–23, 129, 139; of equilibrium income distribution in, 121–23; exponential, 129; extreme income inequality and, 15; of free-market society, 20, 123–30, 184; of income distribution, 129; robustness and, 125–26
stakeholders, CEOs and, 183
statistical equilibrium: of gas molecules, 72, 73, 74; NE and, 209–10, 211, 229; reaching, 69; in statistical thermodynamics, 69–77; uniform distribution of molecules with, 71
statistical mechanics, xviii, xix, 66, 208, 229, 234; central concepts of, xxii; econophysics and, 20; introduction to, 24; statistical mechanical equilibrium, 62
statistical teleodynamics, xix, 24, 31, 229, 234; Darwinian evolution and, 207–8; developing, 79; intrinsic and extrinsic properties, 81–82; key features of, 197–98; transdisciplinary synthesis, 211–12
statistical teleodynamics, macroview, 206–8; perspectives of, 201, 235; postulates of, 201–5
statistical teleodynamics, microview, 210–12, 235; growth relating to, 208; postulates of, 208–9; survival relating to, 208
statistical thermodynamics, 229, 234; distributive justice in BhuVai connection, 62–63; equilibrium distribution and, 65–77; history of, 65–67; microstates, macrostates, multiplicity in, 67–69; phase space, entropy, statistical equilibrium in, 69–77; predicting system-level properties and dynamic behavior, 65. See also statistical mechanics
Stiglitz, Joseph, 13, 15, 115, 194, 237; arguments of, 121; on CEOs pay, 177; on free-market society, 116; on rent-seeking behavior, 45
Stirling’s approximation, 61, 94
strategic equilibrium, 56
strong state argument, 28
structural arbitrariness, 91
Sweden, 236; Gini coefficients for, 159–60; income inequality in, 148, 154, 165; maximum income in, 146; minimum wage for, 145
Switzerland: CEO pay ratios in, 161; fairness in, 147; Gini coefficients for, 159–60; income inequality in, 149, 154, 165; maximum income in, 146; minimum wage for, 145; referendum on CEO pay in, 182
Symmetry and the Beautiful Universe (Lederman and Hill), 199
system-level properties, 65
systems engineering: on efficiency and robustness, 127–28; perspective of hybrid society, 34–38; questions posed in, 35–36, 38
systems property, entropy as, 75
system-theoretic rationale, 193
technologies, with economic ecosystem, 187
teleodynamic systems, phase space in, 82–84
teleogical systems: human-engineered, 80; income distribution and, 79–81; levels of performance in, 80
theoretical and agent-based simulation studies, 230–33
theory, of fairness in economics and political philosophy, 191; fair distribution of income, 191; with ideal free-market society, 191; normative analytical theory, 191, 234
Theory of Games and Economic Behavior, The (von Neumann and Morgenstern), 55–56
Theory of Moral Sentiments, The (Smith), 18–19
theory’s predictions, for large corporations: data-gathering about, 184; general principles relating to, 184; lack of accountability with, 178–79; lognormal distribution with, 171; mathematical framework for examination of, 182; overcompensation with, 171; pay packages relating to, 172–74, 173, 246n1; pay ratios relating to, 172–74, 173; performance targets with, 171–72; salary scenarios for, 172
thermodynamic game, 62, 114; equilibrium energy distribution for, 84
three-class societies, 196, 213
transdisciplinary synthesis, of statistical teleodynamics, 211–12
translational symmetry, 199
Turing Pharmaceuticals, 179–80
Two Treatises on Government (Locke), 37
unfairness, 123; capitalism and, 125; in income inequality, 158, 165; in United Kingdom, 165; in United States, 165
United Kingdom: average salaries in, 145; Gini coefficients for, 159–60; income inequality in, 153, 155; maximum income in, 146; unfairness in, 165
United States: actual wealth distribution in, 11, 12; economic growth of, 225–27; fairness in, 145–47; free-market society in, 166, 237, 247n5; Gini coefficients for, 159–60; maximum income, 146; pay ratios in, 174; tax rates and, 161; unfairness in, 165
United States, income inequality in: extreme, 238; 1910–2010, 2; 1930s to 2010s, 153, 155–57; 1945–1975, 155–57; top 1%, 1910–2010, 3
universal health care, 236
universal principle, of maximum fairness, 200
unknown demand scenario, 90–92
utility, 48, 193; at equilibrium, 234; of fair opportunity for better future, 50–51; inverted u-profile, 51–54, 53; from job, 39
utility function: features of, 223–24; parameters of, 212–17
utility function models, of fairness, 216–17
utopian capitalist society, mathematical foundations of, 192–201
veil: of ignorance, 9, 27; of randomness, 105
von Mayer, Julius Robert, 65
Walrasian general equilibrium model, 130–35, 139
wealth: distribution of, 11, 12; inequality of, 5; power and, 170
winner-take-all culture, 188, 189
World Economic Forum of 2015, 2
World Happiness Report, 40
World Top Incomes (WTI), 144, 147