Abstract

Arrow's theorem [1963] states that a social welfare function (SWF) that simultaneously satis.es completeness, transitivity, independence of irrelevant alternatives (IIA) and Pareto principle is necessarily dictatorial in the sense that the social decision on any pair of candidates coincides with the strict preference of a fixed individual, the Arrow's dictator. When individual preferences are weak orders, no further description is provided on the social outcome as soon as the Arrow's dictator is indifferent on a pair of candidates. We provide in the present paper another proof of the Arrow's theorem using generalized binary constitutions. Moreover we completely characterize the set of Arrovian SWFs, those are complete and transitive SWFs that satisfy IIA and the Pareto principle.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.