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Individually Rational Colective Choice Under Random Preferences

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  • Andrés Carvajal

Abstract

In this paper I consider the following problem: There is a collection of, exogenously given, socially feasible sets, and for each one of them, each one of a group of individuals chooses from an individually feasible set. The fact that the product of the individually feasible sets is larger than the socially feasible set notwithstanding, there arises no conflict between individuals. Assuming that individual preferences are random, I here characterize collective choices in terms of the way in wich individual preferences must co-vary in orden to explain them. I do this by combining standard revealed preference theory and its counterpart under random preferences.I also argue that there exist collective choices that cannon be rationalized, and hence that the individual rationality assumption can be refuted.

Suggested Citation

  • Andrés Carvajal, 2003. "Individually Rational Colective Choice Under Random Preferences," Borradores de Economia 232, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:232
    DOI: 10.32468/be.232
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    References listed on IDEAS

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    1. Matzkin, Rosa L. & Richter, Marcel K., 1991. "Testing strictly concave rationality," Journal of Economic Theory, Elsevier, vol. 53(2), pages 287-303, April.
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    More about this item

    Keywords

    Revealed preference; random utility; collective choice; individual rationality.;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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