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Social consistency and individual rationality

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  • Antoine Billot

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres)

Abstract

This paper aims at proving that social interactions can easily be rationalized by individual preferences as defined in standard microeconomic theory. For that purpose, we show individual choice rationality to be logically equivalent to social consistency, when individual rationality means that individual preferences are completely ordered and social consistency that there is a one-to-one mapping between a given family of social communities and the existence of a particular (unique, reflexive and symmetric) interaction relation between individuals. Moreover, continuity and monotonicity of individual preferences are shown to fit the modeling of group loyalty when group loyalty is defined as the ability to freely accept a personal loss for the global gain of a particular population.

Suggested Citation

  • Antoine Billot, 2007. "Social consistency and individual rationality," Working Papers halshs-00588078, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00588078
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00588078
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    References listed on IDEAS

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