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Informational Requirements for Social Choice in Economic Environments

Author

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  • Fleurbaey, Marc
  • Suzumura, Kotaro
  • 鈴村, 興太郎
  • スズムラ, コウタロウ
  • Tadenuma, Koichi
  • 蓼沼, 宏一

Abstract

Arrow's celebrated theorem shows that the aggregation of individuals' preferences into a social ordering cannot make the ranking of any pair of alternatives depend only on individuals' preferences over that pair, unless the fundamental Pareto and non-dictatorship principles are violated. In a unified approach covering the theory of social choice and the theory of fair allocation, we investigate how much information is needed to rank a pair of allocations by social ordering functions and by allocation rules satisfying the Pareto principle and anonymity. In the standard model of division of commodities, we show that knowledge of a good portion of indifference hypersurfaces is needed for social ordering functions, whereas allocation rules require only knowledge of marginal rates of substitution.

Suggested Citation

  • Fleurbaey, Marc & Suzumura, Kotaro & 鈴村, 興太郎 & スズムラ, コウタロウ & Tadenuma, Koichi & 蓼沼, 宏一, 2000. "Informational Requirements for Social Choice in Economic Environments," Discussion Paper 2, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:piedp1:2
    Note: This version: November 2000 (First version: January 2000)
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/14477/pie_dp2.pdf
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    References listed on IDEAS

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    1. LeBreton, M., 1994. "Arrovian Social Choice on Economic Domains," G.R.E.Q.A.M. 94a37, Universite Aix-Marseille III.
    2. Claude D'Aspremont & Louis Gevers, 1977. "Equity and the Informational Basis of Collective Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(2), pages 199-209.
    3. Michel Breton, 1997. "Arrovian Social Choice on Economic Domains," International Economic Association Series, in: Kenneth J. Arrow & Amartya Sen & Kotaro Suzumura (ed.), Social Choice Re-examined, chapter 4, pages 72-96, Palgrave Macmillan.
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    Cited by:

    1. Marc Fleurbaey, 2000. "Choix social : une difficulté et de multiples possibilités," Revue Économique, Programme National Persée, vol. 51(5), pages 1215-1232.
    2. Marc Fleurbaey & François Maniquet, 2006. "Fair Income Tax," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(1), pages 55-83.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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