Existence of a Pareto optimal social interaction outcome with non-binary preferences
AbstractWe prove the existence of a Pareto optimal state of a society with non-binary personal preferences. To our knowledge, this is the weakest set of conditions under which the existence of a Pareto optimal state has been proven. In our theory everybody in society engages in maximization as a personal act of volitional choice based on non-binary preferences, as in Sen (1997). The resultant equilibrium belongs to a unanimity-based nonempty social maximal set. Our generalization exposes the fact that such equilibria support discrimination, which is a surprising, though serious, indictment of relying exclusively on the Pareto principle in social evaluation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28168.
Date of creation: 13 Jan 2011
Date of revision:
Non-binary choice; Non-binary preferences; Maximization; Pareto optimality;
Find related papers by JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Naqvi, Nadeem, 2010. "On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination," MPRA Paper 21522, University Library of Munich, Germany.
- Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
- Naqvi, Nadeem, 2012. "Why is the Workplace Racially Segregated by Occupation?," MPRA Paper 43352, University Library of Munich, Germany.
- Naqvi, Nadeem, 2012. "Impossibility of interpersonal social identity diversification under binary preferences," MPRA Paper 41365, University Library of Munich, Germany.
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