Macro · Structures & Institutions Stub 1951

Arrow's Impossibility Theorem

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A foundational social choice theorem proving that when voters have three or more distinct options, no collective rank-order voting system can satisfy unrestricted domain, Pareto efficiency, independence of irrelevant alternatives, and non-dictatorship simultaneously.

Field Economics · Political Science
Level of analysis Macro · Structures & Institutions
Paradigm Rational Choice
Key figures 👤 Kenneth Arrow (케네스 애로)
Year 1951

Key Claims

Kenneth Arrow mathematically demonstrated that converting individual ordinal preferences into a coherent, transitivity-preserving collective social welfare order is fundamentally impossible under four minimal democratic axioms: Unrestricted Domain, Weak Pareto Efficiency, Independence of Irrelevant Alternatives (IIA), and Non-Dictatorship. This result fundamentally transformed theoretical welfare economics and political voting science.

Further Reading

  • Arrow, K. J. (1951). Social Choice and Individual Values. John Wiley & Sons.

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