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Economics Paradoxes
By:Books LLC
Published on 2010-05 by Books LLC, Wiki Series

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Pages: 27. Chapters: Arrow's impossibility theorem, Rebound effect, St. Petersburg paradox, Jevons paradox, Productivity paradox, Giffen good, Paradox of thrift, Ellsberg paradox, Allais paradox, Paradox of value, Triffin dilemma, Dollar auction, Easterlin paradox, Bertrand paradox, Leontief paradox, Metzler paradox, European paradox, Edgeworth paradox, Icarus paradox, Gibson's paradox, Scitovsky paradox. Excerpt: In social choice theory, Arrow's impossibility theorem, the General Possibility Theorem, or Arrow's paradox, states that, when voters have three or more distinct alternatives (options), no voting system can convert the ranked preferences of individuals into a community-wide (complete and transitive) ranking while also meeting a certain set of criteria. These criteria are called unrestricted domain, non-dictatorship, Pareto efficiency, and independence of irrelevant alternatives. The theorem is often cited in discussions of election theory as it is further interpreted by the Gibbard-Satterthwaite theorem. The theorem is named after economist Kenneth Arrow, who demonstrated the theorem in his Ph.D. thesis and popularized it in his 1951 book Social Choice and Individual Values. The original paper was titled |A Difficulty in the Concept of Social Welfare.| Arrow was a co-recipient of the 1972 Nobel Memorial Prize in Economics. In short, the theorem proves that no voting system can be designed that satisfies these three |fairness| criteria: There are several voting systems that side-step these requirements by using cardinal utility (which conveys more information than rank orders) and weakening the notion of independence (see the subsection discussing the cardinal utility approach to overcoming the negative conclusion). Arrow, like many economists, rejected cardinal utility as a meaningful tool for expressing social welfare, and so...

This Book was ranked at 27 by Google Books for keyword Gibson's paradox.

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Book which was published by Books LLC, Wiki Series since 2010-05 have ISBNs, ISBN 13 Code is 9781155442693 and ISBN 10 Code is 1155442695

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