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From paradoxes to social rules, or: How economics repeats itself

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  • Bruno Frey

Abstract

There is an analogy of how the paradox of aggregation (Arrow impossibility theorem) and the paradoxa of individual behavior (people decide inconsistently) have been approached in mainstream research. In both cases it is disregarded that paradoxa are part of social reality. A constitutional approach focussing on rules and institutions promises to yield more fruitful insights. Copyright George Mason University 1990

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File URL: http://hdl.handle.net/10.1007/BF02393039
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Bibliographic Info

Article provided by Springer in its journal Constitutional Political Economy.

Volume (Year): 1 (1990)
Issue (Month): 2 (March)
Pages: 27-34

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Handle: RePEc:kap:copoec:v:1:y:1990:i:2:p:27-34

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Web page: http://www.springerlink.com/link.asp?id=102866

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  1. Camerer, Colin F, 1989. " An Experimental Test of Several Generalized Utility Theories," Journal of Risk and Uncertainty, Springer, vol. 2(1), pages 61-104, April.
  2. James M. Buchanan, 1954. "Social Choice, Democracy, and Free Markets," Journal of Political Economy, University of Chicago Press, vol. 62, pages 114.
  3. Machina, Mark J, 1987. "Choice under Uncertainty: Problems Solved and Unsolved," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 121-54, Summer.
  4. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
  5. Kenneth J. Arrow, 1950. "A Difficulty in the Concept of Social Welfare," Journal of Political Economy, University of Chicago Press, vol. 58, pages 328.
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Cited by:
  1. Pelikan, Pavel, 2008. "The government economic agenda in a society of unequally rational individuals," MPRA Paper 19127, University Library of Munich, Germany, revised 06 Dec 2009.

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