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Social diversification, injustices, and Pareto optimality with non-binary preferences

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  • Berdellima, Arian
  • Naqvi, Nadeem

Abstract

We prove the existence of a Pareto optimal state of a finite society that has socially differentiated persons, each with non-binary personal preferences that quasi-order a finite set of alternatives. Everybody engages in a volitional act of choice by maximization of non-binary preferences. As a consequence of interpersonal interaction among social creatures, the social interaction outcome defined as belonging to a nonempty social maximal set exists, and thus is Pareto optimal. Injustices inflicted by one group of persons upon a socially distinct one, arising from social diversification, are, however, consistent with such a collective outcome. (95 words)

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39201.

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Date of creation: 03 Jun 2012
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Handle: RePEc:pra:mprapa:39201

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Keywords: non-binary choice; maximization; Pareto optimality; social identity; justice; discrimination;

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  1. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  2. 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.
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