ARROW'S IMPOSSIBILITY THEOREM |THEORY OF SOCIAL CHOICE | WELFARE ECON | MAJORITY VOTING RULE | EKM |

ARROW'S IMPOSSIBILITY THEOREM |THEORY OF SOCIAL CHOICE | WELFARE ECON | MAJORITY VOTING RULE | EKM |
Prof. Kenneth J. Arrow, in his monumental work, Social Choice and Individual Values, published in 1951, shows that the task of constructing a social welfare function to reflect the aims and aspirations of a free democratic society is an IMPOSSIBLE one. Arrow's impossibility theorem is a social-choice paradox illustrating the flaws of ranked voting systems.
Arrow lays down five reasonable conditions which social choices must meet in order to reflect an individual’s preferences.
CONDITIONS-
1. Universal Domain
A society where individuals have diverse preferences regarding different issues. The universal domain condition requires that the social welfare function can accommodate and reconcile these varying individual preferences, providing a comprehensive and inclusive representation of the collective will.
2. PARETO EFFICIENT -If every individual prefers a over b then society must prefer a over b.
3. THE INDEPENDENCE OF IRRELEVANT ALTERNATIVES (IIA) criterion states that election results should not change if a losing candidate is left out or something other candidate comes in.
4.NON- DICTATORSHIP/NON- IMPOSITION - It implies that social choice must not be dictated by any individual in the community.
5. TRANSITIVITY- It implies that if an alternative A is socially preferred to B and B to C, then in any case C will not be socially preferred to alternative A.
Arrow’s theorem indicates that if the conditions cited above, are to be part of the decision making criteria then it is impossible to formulate a social ordering on a problem such as indicated above without violating one of the following conditions.
ALWAYS BE GRATEFUL FOR WHATSOEVER YOU ARE HAVING😊
FEATURED PLAYLISTS
🎁WELFARE ECONOMICS
• WELFARE ECONOMICS
🎁MICRO /BUSINESS ECONOMICS FOR UG & PG CLASSES
• MICRO ECONOMICS: COMPLETE
#upsc #ies #net #ugc #mba
#bcom #mcom #llb
#economics #commerce
#businesseconomics
#postgraduationeconomics
#hindi
#economicswithkusummaheshwari
#isoquants #perfectsubstitutes
#marginalrateofsubstitution
#MRTS #ridgelines #mrtsinfinity #zeromarginalproduct
#marginalrateoftechnicalsubstitution
#timeelement #elasticity
#behaviourapproach #neoclassicalwelfareeconomics
#pigovianwelfareeconomics
#pigou
#warp #hicksrevisionofdemandtheory
#revisionofdemandtheory
#logicalorderingtheory
#consistencytest #cobbdouglas #lawsofreturnstoscale
#increasingreturnstoscale
#decreasingreturnstoscale
#constantreturnstoscale
#directconsistencytest #cobbdouglasproductionfunction
#cesproductionfunction
#logicoforder #returnstoafactor
#economiesanddiseconomiesofscale
#economies
#diseconomies
#pecuniaryeconomies
#sarp #returnstoscale
#weakordering #producersequilibrium
#leastcostcombination
#optimumoutlay
#strongordering
#arrow #arrowsimpossibilitytheorem
#theoryofsecondbest
#lipsey #measuremwntofelasticity
#expentituremethod #revenuemethod
#lankaster #proportionatemethod
#valuejudgement #percentagemethod
#welfare #arcelasticity #pointelasticity #चापविधि #लोच
#socialwelfare #मांगकीलोच #खर्चविधि
#welfareeconomics
#bergson #मांगकीलोचकोमापनेकेतरीके
#samuelson
#pareto #paretoefficiencycriterion
#paretooptimality #paretocritique
#secondorderconditions
#hicks #marginalconditions
#kaldor #totalcondition
#derivation
#derivation_of_demand_curve
#normalgood
#giffen
#giffengood
#inferiorgood
#compensateddemandcurve
#economicmodels
#inductive
#deductive
#economic_analysis
#economic_mehods
#assumptions #roleofassumptions
#significanceofassumptions
#whatareassumptions
#breakingupofpriceeffect
#decomposingpriceeffect
#decomposingpriceeffect
#slutsky_equation
#compensation_principle
#costdifference_method
#hicks #slutsky #
#indifferencecurve #priceeffect
#incomeeffect #breakingup
#separationofprice effect
#drkusummaheshwari
#substitutioneffect #lawofvariableproportionwiththehelpofisoquants
#isoquants
#macrotheoriesofdistribution
#ricardo #diminishingmarginalutility
#l#gossen #consumerbehaviour
#hicks #demandtheory
#ricardiantheoryofdistribition
#classicaltheoryofdistribution
#marxaiantheoryofdistribution
#kaleckitheoryofdistribution
#kaldortheoryofdistribution
#incomedistribution
#kalecki #kaldor #marx
#pareto #paretooptimality #kaldor
#hicks #compensation
#compensationprinciple
#bergson #samuelson
#socialwelfarefunction
#constrainedbliss
#maximisationofwelfare
#arrow #arrowparadox
#impossibilitytheorem
#generalpossibilitytheorem
#theoryofsecondbest
#lipsey
#lankaster

[@economicswithkusummaheshwa926]

Dear Students
Please find written notes in the description.
For other videos, visit the playlist.
WELFARE ECONOMICS: th-cam.com/play/PLjt55JiIvNH0-CMN0o779KC6WB7QtkbJh.html
Like, Share and Subscribe if you find the video useful. Your feedback keeps me going.

[@sushmakumari3450]

Thank you ma'am

[@crownstudy1298]

Aap bahut acha padate hai ❤ Thank you ma'am

[@crownstudy1298]

Nice explanation mam🎉 thanks 🙏

[@ANVIPANWAR12]

Nice class mam❤