The problem of an elusive general will - PowerPoint PPT Presentation

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The problem of an elusive general will

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The problem of an elusive general will Arrow s theorem: Assumption: any reasonable system of preference aggregation must include a set of conditions (see below). – PowerPoint PPT presentation

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Title: The problem of an elusive general will


1
The problem of an elusive general will
  • Arrows theorem
  • Assumption any reasonable system of preference
    aggregation must include a set of conditions (see
    below).
  • Theorem no system can satisfy these conditions
    and simultaneously guarantee group coherence.

2
The Stupid Conditions
  • ST Social transitivity
  • If xPiy and yPiz ? I, then the social choice
    function must choose xPz
  • U Universal admissibility
  • The set of preference orderings includes all
    possible orderings of x, y, and z (including
    indifference)
  • P Pareto optimality
  • If xPiy for all in the group, the social choice
    function must not choose y.
  • I Independence of irrelevant alternatives
  • If we add a new alternative a, it should not
    change the relative rankings of x, y, and z, and
    by implication the social choice.
  • D (non)-dictatorship
  • There exists no i such that if xPiy, the social
    choice function chooses x regardless of other
    preferences
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