IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/114254.html
   My bibliography  Save this paper

Decision Choice under Pareto Optimal Criteria

Author

Listed:
  • Chatterjee, Sidharta

Abstract

According to the axiomatic foundations of social choice theory, not all decisions benefit everyone. Often, decisions that do not have any implied benefit for the decision maker are made in the (best) interests of others. When a decision is made concerning welfare of others, some individuals—including the decision maker, may be on the receiving end. For, it is impossible to make social decisions by taking into account individual preferences that satisfy all and everyone. This is on account of a great variety in individual choices and preferences ubiquitous among different individuals. Tastes vary among different people—so does individual preferences, and that’s natural. Conflict of interests arises due to subtle variances in individual preferences. In this paper, we discuss about the decision choice that seldom works for every conceivable set of individual preferences. Following Arrovian precepts, it is impossible to satisfy one and all, for there remains a great diversity in individual preferences that result in the problem of choice. Hence, in this research, we develop a taste-based theory of social choice that attempts to address the problem of choice by helping individuals choose the best and the most effective and optimal option among a given set of alternatives that’s assumed to be rational.

Suggested Citation

  • Chatterjee, Sidharta, 2022. "Decision Choice under Pareto Optimal Criteria," MPRA Paper 114254, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114254
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/114254/1/MPRA_paper_114254.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philippe Fontaine, 2007. "From Philanthropy to Altruism: Incorporating Unselfish Behavior into Economics, 1961-1975," History of Political Economy, Duke University Press, vol. 39(1), pages 1-46, Spring.
    2. Sen, Amartya K, 1977. "Social Choice Theory: A Re-examination," Econometrica, Econometric Society, vol. 45(1), pages 53-89, January.
    3. Sen, Amartya, 1994. "The Formulation of Rational Choice," American Economic Review, American Economic Association, vol. 84(2), pages 385-390, May.
    4. Allan M. Feldman & Roberto Serrano, 2006. "Welfare Economics and Social Choice Theory, 2nd Edition," Springer Books, Springer, edition 2, number 978-0-387-29368-4, December.
    5. Sen, Amartya, 1995. "Rationality and Social Choice," American Economic Review, American Economic Association, vol. 85(1), pages 1-24, March.
    6. Robert J. Shiller, 2015. "Irrational Exuberance," Economics Books, Princeton University Press, edition 3, number 10421.
    7. Daniel Kahneman & Amos Tversky, 2013. "Choices, Values, and Frames," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 16, pages 269-278, World Scientific Publishing Co. Pte. Ltd..
    8. ., 2017. "The concept of economic welfare," Chapters, in: Morality and Power, chapter 6, pages 59-68, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chatterjee, Sidharta, 2022. "Rationalizing Decision Choices: What Influences our Social Decision Making?," MPRA Paper 114985, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chatterjee, Sidharta, 2022. "Choice That’s Rational," MPRA Paper 113880, University Library of Munich, Germany.
    2. Tyson, Christopher J., 2008. "Cognitive constraints, contraction consistency, and the satisficing criterion," Journal of Economic Theory, Elsevier, vol. 138(1), pages 51-70, January.
    3. Susumu Cato, 2010. "Brief proofs of Arrovian impossibility theorems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(2), pages 267-284, July.
    4. Allan M. Feldman & Roberto Serrano, 2007. "Arrow's impossibility theorem: Two simple single-profile versions," Working Papers 2007-07, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    5. Allan M Feldman & Roberto Serrano, 2008. "Arrow's Impossibility Theorem: Preference Diversity in a Single-Profile World," Working Papers 2008-8, Brown University, Department of Economics.
    6. Steven Pressman & Gale Summerfield, 2000. "The Economic Contributions of Amartya Sen," Review of Political Economy, Taylor & Francis Journals, vol. 12(1), pages 89-113.
    7. Brouwer, Werner B. F. & Koopmanschap, Marc A., 2000. "On the economic foundations of CEA. Ladies and gentlemen, take your positions!," Journal of Health Economics, Elsevier, vol. 19(4), pages 439-459, July.
    8. Susumu Cato, 2014. "Menu Dependence and Group Decision Making," Group Decision and Negotiation, Springer, vol. 23(3), pages 561-577, May.
    9. Chatterjee, Sidharta, 2022. "Rationalizing Decision Choices: What Influences our Social Decision Making?," MPRA Paper 114985, University Library of Munich, Germany.
    10. Allan M. Feldman & Roberto Serrano, 2006. "Darwinian Arrow's Impossibility Theorem: Two Simple Single-Profile Versions," Working Papers 2006-11, Brown University, Department of Economics.
    11. Susumu Cato, 2018. "Collective rationality and decisiveness coherence," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(2), pages 305-328, February.
    12. Brandt, Felix & Harrenstein, Paul, 2011. "Set-rationalizable choice and self-stability," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1721-1731, July.
    13. Daisuke Ikeda & Toan Phan & Timothy Sablik, 2020. "Asset Bubbles and Global Imbalances," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 20, pages 1-4, January.
    14. Mina Baliamoune-Lutz, 2004. "On the Measurement of Human Well-being: Fuzzy Set Theory and Sen's Capability Approach," WIDER Working Paper Series RP2004-16, World Institute for Development Economic Research (UNU-WIDER).
    15. Jos'e Cl'audio do Nascimento, 2019. "Behavioral Biases and Nonadditive Dynamics in Risk Taking: An Experimental Investigation," Papers 1908.01709, arXiv.org, revised Apr 2023.
    16. Joshua Schwartzstein & Adi Sunderam, 2021. "Using Models to Persuade," American Economic Review, American Economic Association, vol. 111(1), pages 276-323, January.
    17. Irina Georgescu, 2007. "Arrow’s Axiom and Full Rationality for Fuzzy Choice Functions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(2), pages 303-319, February.
    18. List, Christian & Polak, Ben, 2010. "Introduction to judgment aggregation," Journal of Economic Theory, Elsevier, vol. 145(2), pages 441-466, March.
    19. Gerasimou, Georgios, 2010. "Rational indecisive choice," MPRA Paper 25481, University Library of Munich, Germany.
    20. David Vidal-Tomás & Simone Alfarano, 2020. "An agent-based early warning indicator for financial market instability," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(1), pages 49-87, January.

    More about this item

    Keywords

    Choice; decision making; rational choice; social choice theory; Social welfare; taste-based theory of choice; welfare economic functions.;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:114254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.