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

Author

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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)

Suggested Citation

  • Berdellima, Arian & Naqvi, Nadeem, 2012. "Social diversification, injustices, and Pareto optimality with non-binary preferences," MPRA Paper 39201, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:39201
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    References listed on IDEAS

    as
    1. Naqvi, Nadeem, 2010. "On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination," MPRA Paper 21522, University Library of Munich, Germany.
    2. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
    3. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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