This article argues that numbers of uncompensated losers, here equated with numbers below the poverty line, should accompany distribution and efficiency as a third element in the SWF. No constant weights, efficiency and distribution SWF can satisfy two simple axioms

This article presents a set of policy decisions where a three-objective social welfare function (SWF) was used. In addition to efficiency and distributional elements there is a third constituent: the ‘numbers effect'. The cost–benefit criterion that results depends on the numbers who are...