Preference of Social Choice in Mathematical Economics
Mathematical Economics is closely related with Social Choice Theory. In this paper, an attempt has been made to show this relation by introducing utility functions, preference relations and Arrow’s impossibility theorem with easier mathematical calculations. The paper begins with some definitions which are easy but will be helpful to those who are new in this field. The preference relations will give idea in individual’s and social choices according to their budget. Economists want to create maximum utility in society and the paper indicates how the maximum utility can be obtained. Arrow’s theorem indicates that the aggregate of individuals’ preferences will not satisfy transitivity, indifference to irrelevant alternatives and non-dictatorship simultaneously so that one of the individuals becomes a dictator. The Combinatorial and Geometrical approach facilitate understanding of Arrow’s theorem in an elegant manner.
|Date of creation:||11 Mar 2008|
|Date of revision:||20 Nov 2009|
|Publication status:||Published in Indus Journal of Management & Social Sciences 1.3(2009): pp. 18-38|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Miller, Michael K., 2009. "Social choice theory without Pareto: The pivotal voter approach," Mathematical Social Sciences, Elsevier, vol. 58(2), pages 251-255, September.
- Jamal Nazrul Islam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2009.
"Preference of Social Choice in Mathematical Economics,"
Indus Journal of Management & Social Science (IJMSS),
Department of Business Administration, vol. 3(1), pages 18-38, June.
- Islam, Jamal & Mohajan, Haradhan & Moolio, Pahlaj, 2008. "Preference of Social Choice in Mathematical Economics," MPRA Paper 50665, University Library of Munich, Germany, revised 20 Nov 2009.
- Barbera, Salvador, 1980. "Pivotal voters : A new proof of arrow's theorem," Economics Letters, Elsevier, vol. 6(1), pages 13-16.