Define: Arrows Impossibility Theorem

Arrows Impossibility Theorem
Arrows Impossibility Theorem
What is the dictionary definition of Arrows Impossibility Theorem?
Dictionary Definition of Arrows Impossibility Theorem

Arrow’s Impossibility Theorem is a fundamental concept in social choice theory, named after the economist Kenneth Arrow. It states that it is impossible to design a voting system that satisfies a set of desirable criteria simultaneously. These criteria include universal domain (the ability to rank any set of alternatives), non-dictatorship (no single individual can determine the outcome), Pareto efficiency (if everyone prefers one alternative over another, the collective preference should reflect that), and independence of irrelevant alternatives (the ranking of alternatives should not be affected by the presence or absence of other alternatives). Arrow’s Impossibility Theorem highlights the inherent challenges and limitations in aggregating individual preferences into a collective decision-making process.

Full Definition Of Arrows Impossibility Theorem

Arrow’s Impossibility Theorem, formulated by economist Kenneth Arrow in 1951, states that it is impossible to create a voting system that satisfies all of the following criteria: non-dictatorship, universal domain, non-imposition, and Pareto efficiency. In other words, it is impossible to design a voting system that is fair, representative, and satisfies all desirable properties simultaneously. This theorem has significant implications for the field of social choice theory and has been influential in the study of voting systems and democratic decision-making processes.

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This glossary post was last updated: 29th March 2024.

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