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Because of this example, some authors credit Condorcet with having given an intuitive argument that presents the core of Arrow's theorem. [20] However, Arrow's theorem is substantially more general; it applies to methods of making decisions other than one-man-one-vote elections, such as markets or weighted voting, based on ranked ballots.
The work culminated in what Arrow called the "General Possibility Theorem," better known thereafter as Arrow's (impossibility) theorem. The theorem states that, absent restrictions on either individual preferences or neutrality of the constitution to feasible alternatives, there exists no social choice rule that satisfies a set of plausible ...
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, mathematician and political theorist.He received the John Bates Clark Medal in 1957, and the Nobel Memorial Prize in Economic Sciences in 1972, along with John Hicks.
Unrestricted domain is one of the conditions for Arrow's impossibility theorem. Under that theorem, it is impossible to have a social choice function that satisfies unrestricted domain, Pareto efficiency, independence of irrelevant alternatives, and non-dictatorship. However, the conditions of the theorem can be satisfied if unrestricted domain ...
Arrow's impossibility theorem is a key result on social welfare functions, showing an important difference between social and consumer choice: whereas it is possible to construct a rational (non-self-contradictory) decision procedure for consumers based only on ordinal preferences, it is impossible to do the same in the social choice setting ...
Social choice theory is a branch of welfare economics that extends the theory of rational choice to collective decision-making. [1] Social choice studies the behavior of different mathematical procedures (social welfare functions) used to combine individual preferences into a coherent whole.
It is closely tied to many of the most important theorems in these fields, including Arrow's impossibility theorem, the Balinski-Young theorem, and the money pump arguments. In behavioral economics, failures of IIA (caused by irrationality) are called menu effects or menu dependence. [3]
Non-dictatorship is one of the necessary conditions in Arrow's impossibility theorem. [1] In Social Choice and Individual Values , Kenneth Arrow defines non-dictatorship as: There is no voter i {\displaystyle i} in { 1 , ..., n } such that, for every set of orderings in the domain of the constitution, and every pair of social states x and y , x ...